Gulf Union Cooperative Insurance Co. cancelled the acquisition of Al-Ahlia Insurance Co..
The transaction is subject to consummation of due diligence investigation, approval of Saudi Arabian Monetary Authority (SAMA), Capital Markets Authority, the approval of the Council for Competition Protection, the approval at the general assembly of each company, and the approval of the competent Saudi Arabian regulatory authorities. As announced on May 15, 2018, Saudi Arabian Monetary Authority has approved the transaction. The merger awaits approval from the extraordinary general meetings of either party and other regulatory approvals. The meeting of the shareholders of Al-Ahlia is scheduled for January 27, 2018. As of August 7, 2018, the transaction is approved by Saudi General Authority for Competition. As on February 18, 2019, the shareholders of Al-Ahlia rejected the merger offer in the shareholder's meeting. The shareholders also refused the authorization of the board of directors, or any person so authorized by the board to adopt any resolution or take any action that may be necessary to implement the resolution regarding the merger.
Wasatah Capital acted as financial advisor and Shearman & Sterling LLP in association with Dr. Sultan Almasoud & Partners acted as legal advisor for Al-Ahlia. Saudi Kuwaiti Finance House S.S.C. acted as financial advisor and Wissam Hachem of Al-Enezee in association with Holman Fenwick Willan LLP acted as legal advisor for Gulf Union.
Gulf Union Cooperative Insurance Co. (SASE:8120) cancelled the acquisition of Al-Ahlia Insurance Co. (SASE:8140) on August 2, 2019.