Al-Ahlia, Gulf Union receive no-objection letter from SAMA on merger deal

Al-Ahlia Insurance Co. and Gulf Union Cooperative Insurance Co. received, on Aug.10, Monday, a no-objection letter on their merger deal from the Saudi Arabian Monetary Authority (SAMA).

Both companies will work to obtain remaining regulatory approvals, they said in separate bourse statements, indicating that the completion of the deal depends on obtaining all regulatory approvals in addition to the approvals of the extraordinary general assembly of each company.

Following the necessary approvals, Al-Ahlia Insurance will issue and publish a circular from the board of directors, which will be directed to its shareholders and will mainly include the opinion of the board regarding the submitted offer and the merger deal.

Gulf Union will also issue and publish the offer document, which will be directed to the shareholders of Al-Ahlia Insurance and will include the official offer submitted by the insurer.

Following that, both companies will invite the extraordinary general assembly to vote on the merger deal.

Any significant updates regarding the merger will be announced in due course, the companies said.

On June 4, Gulf Union signed a binding merger agreement with Al-Ahlia Insurance to acquire all its shareholders’ issued shares through share swap without any cash payment.