Insurance Authority approves Saudi Enaya-Salama merger

Salama, Saudi Enaya say merger deal remains subject other conditions, approvals

Saudi Arabia’s Insurance Authority (IA) approved on Nov. 16 the merger deal between Salama Cooperative Insurance Co. (Salama) and Saudi Enaya Cooperative Insurance Co. (Saudi Enaya), along with a number of related matters.

The companies said in separate statements to Tadawul that the deal remains subject to a number of conditions, including approval from the Capital Market Authority (CMA) and the shareholders of both companies.

Any material developments regarding the merger will be disclosed in due course, the companies added.

In February, Saudi Enaya and Salama signed a non-binding memorandum of understanding (MoU) to evaluate the feasibility of their potential merger, data compiled by Argaam showed.

In June, Saudi Arabia’s General Authority for Competition (GAC) issued a no-objection on the economic concentration process related to the proposed merger between both companies.

In August, Salama inked a binding merger agreement with Saudi Enaya under which the latter will merge into Salama, with the transfer of all its rights, obligations, assets, and contracts to Saudi Enaya. In return, Salama will issue 18.89 million ordinary shares in favor of Saudi Enaya’s shareholders.