The Mediterranean and Gulf Insurance and Reinsurance Company (Medgulf) and Buruj Cooperative Insurance Company (Buruj) have entered into a binding merger agreement, both companies announced in separate statements lodged with the Saudi bourse (Tadawul) on 26 July.
The insurers say that the signing of the binding agreement represents an announcement of their firm intention to make an offer pursuant to the merger and in accordance with the conditions and provisions of the merger agreement.
Under the agreement, Buruj will be merged into Medgulf. The latter will subsume all of Buruj’s rights, liabilities, assets and contracts. In exchange, Medgulf will issue 33,157,894 new ordinary shares with a nominal value of SAR10 ($2.67) each to Buruj’s shareholders.
The Buruj statement says that the merger agreement will result in the delisting of the company’s shares. Buruj will cease to exist and all its rights and obligations will be transferred to Medgulf.
The two insurers announced in July 2024 that they had signed a memorandum of understanding to evaluate a potential merger. They announced in January 2025 that they had obtained the General Authority for Competition’s non-objection to the economic concentration resulting from the merger.