Logos of Walaa Insurance and SABB Takaful
Saudi Arabia’s General Authority for Competition (GAC) gave the green light for the completion of the economic concentration process between Walaa Cooperative Insurance Co. and SABB Takaful.
In a statement, the authority said it recognized the commodity dimension of the deal in the property insurance market by virtue of the intersection of the concentration parties in this market.
GAC added that it studied the local insurance market to determine if there are any concerns about competition.
The authority concluded that there are no expected concerns affecting competition in the Kingdom, given the presence of a large number of market players locally. In addition, there are no regulatory or structural obstacles in the insurance market. Accordingly, the market share of the merging parties after the deal will not raise any concerns about competition.
Walaa signed a binding merger agreement with SABB Takaful on Feb. 24, reflecting the agreement of both companies to merge through a share swap transaction, whereby Walaa will issue 0.6 share against each issued share in SABB Takaful for the benefit of eligible shareholders.
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Merger Details |
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Method of Merger |
By merging SABB Takaful with Walaa and transferring all SABB Takaful’s assets and liabilities to Walaa. |
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Merger Value |
If the merger will be approved, Walaa will increase its share capital by issuing 20.42 new ordinary shares with a nominal value of SAR 10 per share to SABB Takaful’s entitled shareholders based on the exchange ratio. The value of Walaa’s share capital will accordingly become SAR 850.58, divided into 85.06 nominal shares. |
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Nominal Value |
SAR 10 per share |
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Equity Compensation |
Issuance of 0.6 share of Walaa against one share in SABB Takaful |
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Capital of Merged Entity |
SAR 850.58 mln |
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Ownership of Walaa Shareholders Upon Merger Completion |
75.99% |
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Ownership of SABB Takaful Shareholders Upon Merger Completion |
24.01% |
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