Dubai Financial Market (DFM), the emirate's local stock exchange operator, has agreed to acquire its internationally focused rival Nasdaq Dubai from Nasdaq OMX and Borse Dubai in a cash and shares offer worth $121 million. 

Under the terms of the offer, U.S. exchange operator Nasdaq OMX will swap its 33.3 percent stake in Nasdaq Dubai for a 1 percent stake in Dubai Financial Market, equivalent to 40 million shares or $39 million at the end of Dec. 21. 

Nasdaq OMX said the transaction could result in a non-cash impairment charge of $81 million on the carrying value of its investment in Nasdaq Dubai.

Nasdaq Dubai is 66.6 percent owned by Borse Dubai, a wholly government-owned entity which also owns 80 percent of DFM.