Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market, PJSC (DFM:DFM) merger has been agreed to by both the exchanges and is now awaiting the outcome of the valuation exercise, reported Gulf News citing sources with knowledge of the plan. "It's almost a done deal, and it is currently at the valuation stage," said one of the sources, adding that it is very likely that the announcement of the merger will be made by the end of the year 2013. Abu Dhabi Securities Exchange has hired JP Morgan Chase and First Gulf Bank to advice on the merger, reported Reuters quoting unnamed sources.

Investment Corporation of Dubai, has hired Citigroup to advice on the matter, according to the sources. Dubai Financial Market however said, "DFM, as a company [organisation], are not a party that is directly involved in such exchanges and deals, or their possible results. As things stand, we do not have any updates that can be disclosed, and therefore, it is difficult for us to either deny or confirm the report published today by Reuters.

We would also like to confirm that we did not play a part in the publication of the report, and therefore, it is also difficult for us to speculate on the accuracy or authenticity of information included in the report." One of the sources told Gulf News that Abu Dhabi will likely create a company that holds DFM and they are going to have a partnership of the holding company. The source added, "The Abu Dhabi entity will buy some part of DFM and DFM will continue to remain as a listed company. The valuation is the key - at what valuation will DFM sell to ADX."