Gulf Union Insurance, Al Ahlia in early talks for potential merger

The board of Gulf Union Cooperative Insurance Co. has decided to start initial talks with Al Ahlia for Cooperative Insurance for a potential merger.

Required feasibility studies and due diligence will also be started, Gulf Union said in a regulatory statement.

Both Saudi-listed companies will discuss signing a non-binding preliminary agreement that would set the proposed merger plan and timeline within the next 12 months.

The proposed merger will depend on approvals by regulatory authorities and shareholders of both insurers.

A financial advisor will be mandated by Gulf Union no later than March 16, the insurer added.

*Correction: An earlier version of this story incorrectly referred to Gulf Union as Gulf General Cooperative Insurance Company