GAC issues no-objection on Salama, Saudi Enaya merger

Logos of Saudi Enaya Cooperative Insurance Co. and Salama Cooperative Insurance Co.

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

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

The two companies stated that if a merger agreement is reached, the transaction would be subject to several conditions, including obtaining the approvals 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, Saudi Enaya and Salama signed a non-binding memorandum of understanding in February to assess the feasibility of the merger.