Gulf Union Al Ahlia, Gulf General cancel general meetings to discuss merger

Logos of Gulf Union Al Ahlia Cooperative Insurance Co. and Gulf General Cooperative Insurance Co. (GGI) 

Gulf Union Al Ahlia Cooperative Insurance Co. and Gulf General Cooperative Insurance Co. (GGI) cancelled their general meetings to vote on the proposed merger, according to two separate Tadawul statements.

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They added that the decision came after the proposed merger was cancelled. Both insurers announced on March 25 the termination of their proposed merger deal, including the offer made to GGI’s shareholders.

According to the planned merger’s offer document and shareholders circular, the proposed deal is conditional on compliance with a “no material adverse effect” clause. This was defined to include any event that results in a ≥15% decline in the final valuation of either company as of June 30, 2024.

Given the occurrence of a material adverse event affecting GGI, Gulf Union Alahlia’s board of directors reviewed the matter, and GGI engaged in discussions with the bidder. As a result, both companies have agreed to cease the merger agreement as of today.