Arabtec Holding and Trojan Holding mandated advisers on a potential merger between the two construction firms, two sources with knowledge of the matter told Reuters. Arabtec said in September the two companies “commenced a review of the possibility of combining their construction businesses.” Should the talks succeed, the companies will start due diligence and a process for a potential merger, one of the sources said. Trojan Holding, which owns a number of construction companies including Trojan General Contracting, has worked on large contracts for developers, including Aldar Properties, Emaar Properties and Nakheel. Arabtec Holding in November hired an adviser to work on a new debt-restructuring plan. The move came little more than a year after Arabtec raised AED1.5bn (USD408mn) in a rights issue to wipe out accumulated losses and separately asked banks to waive terms on its debt.