Saudi Enaya, Amana Insurance discuss potential merger

Saudi Enaya Cooperative Insurance Co. and Amana Cooperative Insurance Co. announced that their boards of directors have approved to evaluate a potential merger.

In separate statements on Tadawul, the two insurers emphasized that these discussions do not necessarily mean that the merger is likely to take place and will only explore the possibility of a mutual benefit for the shareholders of the two companies.

The two parties will sign a non-binding memorandum of understanding (MoU) to assess the merger feasibility, in case of reaching an initial agreement on the merger.

Official approvals will be obtained before the merger completion, the two firms noted.

Any further developments will be announced in due course, in accordance with the relevant regulatory disclosure requirements.

Last March, the insurance sector witnessed a merger between Walaa Cooperative Insurance Co. and Metlife AIG ANB Cooperative Insurance Co., in addition to a number of other potential mergers being studied, according to the data compiled by Argaam.

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