Arabian Shield Cooperative Insurance Company signed a non-binding memorandum of understanding to acquire Alinma Tokio Marine Company.

Arabian Shield Cooperative Insurance Company (SASE:8070) signed a non-binding memorandum of understanding to acquire Alinma Tokio Marine Company (SASE:8312) on December 13, 2022. Arabian Shield Cooperative Insurance Company signed a binding agreement to acquire Alinma Tokio Marine Company on June 14, 2023. Under the terms, consideration will be of share to share exchange.

It is anticipated that the surviving entity will absorb all of the employees of the merging entity, and there will be no enforced redundancies. The transaction is subject to approval by regulatory authorities, shareholders approval from Arabian Shield Cooperative and Alinma Tokio, and due diligence. As of June 20, 2023, General Authority for Competition issued a non-objection certificate to complete the binding merger agreement.