Amlak Finance, Tamweel Start Merger Talks With Dubai Government

By Arif Sharif

Oct. 19 (Bloomberg) -- Amlak Finance PJSC and Tamweel PJSC, the United Arab Emirates two biggest mortgage companies, are in merger talks with the government holding company that owns a controlling interest in both firms.

``All key stakeholders have reaffirmed their strong support for a potential combination of the two entities,'' the two Dubai-based companies said in a statement posted on the Dubai Financial Market Web site today after commencing negotiations with the Investment Corporation of Dubai.

The two lenders are also working with the government ``to arrange access to liquidity and funding alternatives, to the extent necessary, to fulfill ongoing business plans of the combined entity,'' the statement added.

To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net