Walaa, MetLife AIG ANB to evaluate potential merger

Walaa Cooperative Insurance Co. has inked a non-binding memorandum of understanding (MoU) with MetLife AIG ANB Cooperative Insurance Co. to evaluate a potential merger between both companies.

Both companies will conduct technical, financial, legal and actuarial due diligence and engage in non-binding discussions on the terms and conditions of the potential merger.

The merger deal will be implemented via a share swap, where Walaa will issue new shares to MetLife AIG ANB Cooperative Insurance Company shareholders in exchange for all issued shares of the latter.

The MoU will extend for three months, both the insurers said in bourse statements.

Walaa has appointed Aljazira Capital as a financial advisor for the proposed merger, while Metlife named Saudi Kuwait Finance House.