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Saudi insurers Gulf Union Al Ahlia Cooperative Insurance Co and Al Sagr Cooperative Insurance will consider merging after a board resolution.
Gulf Union Al Ahlia announced to the Saudi Stock Exchange, Tadawul, that its board had resolved to start initial discussions with Al Sagr.
The statement said if an initial agreement is reached, the two parties will enter into a non-binding MOU to assess the feasibility of the proposed merger, dependent on approvals.
Gulf Union Al Ahlia was formed after a merger between Gulf Union and Al Ahlia, which was announced at the end of 2020.
The company announced earlier this month that it had received approval from the Saudi Central Bank (SAMA) to increase its capital to SAR 458.9 million ($122 million) from SAR 229.4 million.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
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