GAC greenlights AICC, UCA merger deal

Logos of United Cooperative Assurance Co. (UCA) and Arabia Insurance Cooperative Co. (AICC)

Saudi Arabia’s General Authority for Competition (GAC) has issued a no-objection on the economic concentration process related to the proposed merger between Arabia Insurance Cooperative Co. (AICC) and United Cooperative Assurance Co. (UCA), the insurers said in separate statements to Tadawul.

The companies said that the potential merger is still under review, and no binding agreement has been signed to date.

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The two companies stated that if a merger deal is reached, it will be contingent upon several conditions, such as gaining the consent of the Insurance Authority, the Capital Market Authority, and the Saudi Exchange (Tadawul), as well as the approval of the shareholders of both companies.

They added that any material developments related to the proposed merger transaction will be disclosed in due course.

According to data available with Argaam, AICC and UCA signed a non-binding memorandum of understanding (MoU) in June to assess the feasibility of the merger.

If the deal is executed, AICC will be the merging company and UCA will be the merged company, through a share swap deal by increasing AICC's capital by issuing new shares to UCA shareholders based on the swap coefficient that will be agreed upon.