UAE Exchange-Travelex merger: New

holding company planned

Contents
Introduction.............................................................................................................................................3
Discussion...............................................................................................................................................3
Summary.................................................................................................................................................5
Conclusion and Opinion..........................................................................................................................5
Bibliography................................................................................................................................................6

Introduction
This news report by Emirate 24/7 reveals the merger that is going to take place among Travelex Holdings
Limited and the UAE Exchange. This move is taken by both the entities as a strategic step to serve long
term benefits for both the firms. The official announcement about the plan under process was made
during NMC Healthcares (a company owned by one of the founder of this merger) anniversary
celebrations.
Travelex which is a foreign currency exchange group started its journey 1976 in London. Over the years,
it has earned an impressive success and today, it is operating in more than 30 countries providing
exchange services round the globe. On May 23 rd, 2014, Travelex was acquired by an Indian Entrepreneur
Dr. Bavaguthu Raghuram Shetti, together with his equity partners associated with Centurion for 1billion.
This acquisition is to be controlled by parent company RS Ventures & Holdings Limited, by Shetti and his
partners. Dr. Bavaguthu Raghuram Shetti is an entrepreneur with a business portfolio of three flagship
ventures i.e. nmc Health & Neopharma LLC, and now the UAE Exchange is added to this portfolio with
this merger.
On the other hand, UAE Exchange is also a global money transfer service company providing company
with its operations in more than 30 countries. Headquartered in Abu Dhabi and established in 1980, UAE
Exchange has a dominant presence in Middle-East providing remittances, foreign exchange and other
related payment problems solutions to more that more than 7.9 million customers worldwide.

Discussion
As a result of this acquisition of UAE Exchange by Travelex, the customer base which these newly
merged companies are together serving has astonishingly reached to an advanced level. Since Travelex
possess a leading position as a foreign exchange business and UAE Exchange provided remittance
services with a share of more than 6% of the global remittance market, their different targets are leading
them towards a never ending horizon of opportunities for these companies waiting to be exploited. The
group is expected to have a market leadership for both these services in the global market.

Both the companies Travelex and UAE Exchange will remain independent brands. However in an attempt
to pursue global strategy, both shall focus on exploiting the synergies that these brands offer, thereby
leading these brands to gain and maintain a stronger position in newer markets. As reported by a high
official of the company, this merger will take the group to a new height by providing services to a broader
and diversified customer population.
Another benefit that this merger is reported to yield is a wider spectrum of customer base. Travelex has
customer population from middle to high income class. On the other hand, UAE Exchange is majorly
serving customers from low to middle income class. Hence, when combined, the new group shall lead
these firms to a wider spectrum of customers from all income levels.
The shareholders intend to bring both these leading under a single umbrella so as to grab a higher market
share from global markets. A greater integration of the strengths that both the brands own will help the
newly merged group to overcome the internal weaknesses and external threats collaboratively.
With the variation in their services portfolio, holding company that retains both the brands is expecting its
presence in more than 2,300 locations round the globe (since Travelex is providing services in 1,500
locations while UAE Exchange in serving customers with almost 800 outlets in 40 countries). Following
this merger, the merged company United Global will be staked to public i.e. it will be made public by
end of 2016 or in early 2017; after the lengthy process of regulatory clearances get over and market
conditions get more suitable. It will be listed on a major stock list, probably the United Arab Emirates
Stock Exchange i.e. Abu Dhabi Securities Exchange.

Summary
Summing the discussion up, both the companies have decided to go for a merger as their strategy to get
global and enter new markets to broaden their customer population in terms of size as well as diversity.

Both, while remaining independent, will exploit their individual strength collectively and shall face the
threatening challenges that such businesses collaboratively.

Conclusion and Opinion

From the above discussion, it can be concluded that in todays dynamic business world, with ever
increasing challenges to face, such mergers of leading brands help the firms give their rivals a tougher
competition. In addition to this, merging strategy help business explore new markets and to get their
foothold in new market in relatively lesser time. From the benefits that both the firms are going to reap
from this merger, it can be confidently said that this merger as a strategic move is going to give the rivals
a cut throat competition in global market, particularly in Middle East.

Bibliography
Augustine, B. D. (2016, 1 24). UAE Exchange to expand global footprint through Travelex synergies.
Retrieved from Gulf News, Banking: http://gulfnews.com/business/sectors/banking/uaeexchange-to-expand-global-footprint-through-travelex-synergies-1.1658817
Dr. B. R. Shetty to acquire Travelex supported by associates of Centurion. (n.d.). Retrieved from
Travelex: http://www.travelex-corporate.com/Pages/Corp_PR_Details.aspx?id=49392133594
Sathish, V. (2015, 11 24). UAE Exchange-Travelex merger: New holding company planned. Retrieved
from Emirate 24/7: http://www.emirates247.com/business/uae-exchange-travelex-merger-newholding-company-planned-2015-11-24-1.611593