Dubai Refreshments (DRC) said on Monday it would open talks with unlisted Abu Dhabi Refreshments Company about a possible merger.

Both firms are franchisee holders for the distribution of Pepsi Co products.

A working group would be set up to study a proposed tie-up between the two companies, which will report to the respective board of directors "in a few months", a statement to the Dubai bourse from DRC said.

No values were given in the statement. Dubai Refreshments has a market capitalisation of around $300 million. – Reuters