Malath, LIVA agree on potential merger structure

Logos of LIVA Insurance Co. and Malath Cooperative Insurance Co. 

Malath Cooperative Insurance Co. reached a non-binding and preliminary agreement with LIVA Insurance Co. to structure the potential merger deal, under which LIVA will merge into Malath, the two insurers said in separate statements to Tadawul.

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The proposed merger is still under study, and neither company has signed a binding agreement regarding the deal or its structure to date.

The potential merger remains subject to the approvals of the Insurance Authority (IA), the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul), as well as obtaining the required approvals of the shareholders of both companies.

The insurers will make further announcements when material developments occur in relation to the merger, the statements added.

According to data compiled by Argaam, LIVA and Malath signed, in August, a non-binding memorandum of understanding (MoU) to evaluate a potential merger.

In November, the companies announced that the General Authority for Competition (GAC) issued a “no-objection” on the completion of the economic concentration process for the merger.