CMS Advises OIA on STG’s Investment in DME 

International law firm CMS has successfully advised the Oman Investment Authority (OIA) on Saudi Tadawul Group’s (STG) acquisition of a 32.6% stake in DME Holdings Limited, the parent company of Dubai Mercantile Exchange (DME). This strategic investment will see STG, a leading diversified capital markets group in the MENA region, become the joint largest shareholder of DME alongside CME Group, with other shareholders including the OIA, Dubai Holding, and global financial and commercial industry leaders. 

The CMS team was led by partner Graham Conlon (pictured) and senior associate Blair Jones

The acquisition of the shares, comprising a mix of new and existing shares, will inject new capital into DME, enabling the exchange to accelerate its growth and expand its reach. Following the transaction, DME will be rebranded as the Gulf Mercantile Exchange, reflecting its position as the key regional commodities exchange in the Middle East with global relevance. 

This investment by STG marks a significant milestone for DME, bringing together world-class strategic partners and expertise to propel DME’s growth ambitions. The collaboration will empower the newly rebranded Gulf Mercantile Exchange to capitalize on the growing demand for energy, metals, and agricultural commodity markets. Additionally, the exchange will play a pivotal role in supporting the global transition to a sustainable economy by introducing next-generation derivatives contracts. The transaction is subject to customary closing conditions, including regulatory approvals. 

DME, founded in 2007 and headquartered in the UAE, is home to the DME Oman Crude Oil Futures Contract (DME Oman), the world’s largest physically delivered crude oil contract. The DME Oman contract is recognized as the third-most important crude oil benchmark globally, utilized by five national oil companies based in the Gulf Cooperation Council countries. 

AS&H Clifford Chance has provided legal counsel for Saudi Tadawul Group (STG). Click here for further details. While Norton Rose Fulbright has provided legal counsel to CME Group Inc. Click here for further details.