Competition authority approves merger of Gulf Union, Al-Ahlia

Saudi Arabia’s General Authority for Competition (GAC) approved today, June 16, the merger of Gulf Union Cooperative Insurance Co. and Al-Ahlia Insurance Co.

On June 4, Gulf Union signed a binding merger agreement with Al-Ahlia to acquire the issued shares of Al-Ahlia shareholders through a share swap without any cash payment.

If the merger is approved, Gulf Union will issue 7.947 million new ordinary shares at SAR 10 par value each, to buy all issued shares of Al-Ahlia at a total par value of SAR 79.47 million.

Gulf Union will issue 0.646 shares for every share in Al-Ahlia.

Accordingly, Gulf Union will raise its capital from SAR 150 million to SAR 229.47 million. The number of shares will be increased from 15 million to SAR 22.947 million.

When the merger is finalized, Al-Ahlia shareholders will own 34.63% of Gulf Union, while Gulf Union shareholders will own 65.37% of the company following the capital hike.

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