The Mediterranean and Gulf Insurance and Reinsurance Company (MedGulf) and Buruj Cooperative Insurance Company (Buruj) have received approval from the General Authority for Competition (GAC) on proceeding with the economic concentration resulting from the potential merger of the two operators.
Both companies announced the GAC decision in two separate statements on Tadawul noting that the potential merger is still under consideration and no binding agreement has been signed to date. The statements added that in the event an agreement is reached, the potential merger will remain subject to obtaining the requisite approvals of the Insurance Authority, the Capital Market Authority and the Saudi Exchange, as well as the approval of the shareholders of both companies.
In July 2024, MedGulf and Buruj signed a non-binding memorandum of understanding (MoU) to evaluate a potential merger between the two companies. The MoU states that, MedGulf being the merging company and Buruj being the merged, the transaction will be conducted through a share exchange offer through increasing MedGulf’s capital and issuing new shares to the shareholders of Buruj based on an exchange ratio to be agreed between the parties.
Both companies will conduct financial, tax, legal, and actuarial due diligence and engage in non-binding discussions on the terms and conditions of the proposed transaction, said a previous statement on Tadawul.