(MENAFN- Gulf Times) Milaha is initiating talks with United Arab Chemical Carriers in the UAE regarding a possible combination of their respective product and chemical tanker businesses.

"If successful, this move is expected to result in a larger and stronger business, provide better financial returns, and strengthen the combined business market position," a Milaha spokesman said, confirming the development.

The potential transaction remains subject to due diligence and corporate, regulatory and other necessary approvals, the spokesman said without divulging finer details.

At the annual general assembly meeting in March this year, Milaha chairman and managing director Sheikh Ali Jassim bin Mohamad al-Thani had said it will rather adopt "wait and see" approach on acquisitions.

He had highlighted that prior to the decline in global oil prices; Milaha actively pursued growth across a number of core areas and evaluated several acquisition opportunities both within and outside the region.

"In light of the volatility in the energy markets, we felt it would be prudent to take a wait and see approach," he had said.