Saudi Tadawul Group Holding Company (SASE:1111) entered into a binding agreement to acquire unknown minority stake in Dubai Mercantile Exchange Limited from a group of sellers on January 18, 2024. Under the terms of the Agreement, ensuring the integrity of the DME Oman contract has been of particular importance to all parties. As such, it has been agreed that no changes to any aspects of the DME Oman contract will result from the transaction contemplated by the Agreement. In addition, to avoid conflict of interest and safeguard the twin imperatives of neutrality and price discovery, no Saudi Arabian crude oil contract will be traded, sold or bought on, or indexed to, nor will Saudi crude be delivered against, the DME Oman contract via DME. As a result of transaction, Saudi Tadawul Group will become the joint largest shareholder in DME Holdings Limited alongside CME Group, with other shareholders including the Oman Investment Authority and Dubai Holding as well as global financial and commercial industry leaders. The Agreement also includes an ability for STG to increase its shareholding in the future. In a related transaction, Saudi Tadawul Group also acquiring new shares in Dubai Mercantile Exchange Limited.

Following the completion of Saudi Tadawul Group's investment, DME will continue to operate as usual from its headquarters in Dubai International Financial Centre (DIFC) and will remain regulated by the Dubai Financial Services Authority. CME Group will continue to provide its industry-leading CME Globex trading technology and clearing services to Gulf Mercantile Exchange. The CFTC's role in overseeing CME Clearing's operations to protect the integrity of transactions executed on the DME and mitigating risk to traders will remain unchanged. The transaction is subject to closing conditions, including as to regulatory approvals. Hamed Afzal of Norton Rose Fulbright (Middle East) LLP acted as a legal advisor to CME Group Inc.,. AS&H Clifford Chance acted as a legal advisor to Saudi Tadawul Group. Tom Cochrane and Natalie Neto of Walkers (Bermuda) Limited and Walkers (Dubai) LLP acted as legal advisor to Saudi Tadawul Group.