07.07.2016 - Abu Dhabi mergers have similar causes but different purposes
In response to two recent Abu Dhabi mergers – National Bank of Abu Dhabi with FGB (a combined market value of US$30 billion) and the International Petroleum Investment Company with Mubadala Development Company (with combined assets of $127bn) – one may wonder: why, and why now? While the prevailing state of oil prices has been correctly characterised as a driving factor, a deeper look exposes subtle yet important differences between the two mergers, with implications for what lies in the future. Traditionally, the primary function of a sovereign wealth fund is to transfer wealth from current to future generations in a low-risk manner by buying assets from across the entire globe...............................................Full Article: Source
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