Gulf Union Al Ahlia and Al Sagr Discuss Merging Possibility

Gulf Union Al Ahlia Cooperative Insurance Company announced on Monday the Board of Directors’ resolution to start initial discussions with Al Sagr Cooperative Insurance Company to explore the possibility of merging the two companies.

The two companies indicated that entering into these discussions does not necessarily mean that the merger will take place between the two parties but only to explore the possibility of mutual benefits for the shareholders of the two companies.

They said on Tadawul on Monday that in the event that an initial agreement is reached on the merger, a non-binding Memorandum of Understanding will be signed with Al Sagr Cooperative Insurance Company to assess the feasibility of the merger of the two companies subject to obtaining the required approvals before completing the merger.

The shareholders will be informed of any future developments in this regard and in accordance with the relevant regulatory disclosure requirements, the two companies concluded.