Riyadh - Mubasher: Arabia Insurance Cooperative Company and United Cooperative Assurance Company agreed to evaluate a potential merger between the two firms.
Under the non-binding memorandum of understanding (MoU), the two companies will merge through a swap ratio transaction, according to two bourse disclosures.
The agreement, signed on 19 June 2025, will remain in effect for up to 12 months or until a definitive merger agreement is finalized.
The MoU may be extended by mutual consent and terminated by either party at any time with written notice, without liability.
Both companies will conduct technical, financial, tax, legal, and actuarial due diligence per the terms and conditions of the proposed transaction.
The deal is subject to a number of regulatory approvals, including the Insurance Authority (IA), the Capital Market Authority (CMA), the Saudi Exchange (Tadawul) and the General Authority for Competition, as well as the extraordinary general meeting (EGM) of the two companies.