Saudi Arabia.. “Medgulf Insurance” shares rise after agreeing to merge with “Buruj Mutual Insurance”

The shares of the Mediterranean and Gulf Cooperative Insurance and Reinsurance Company “Medgulf Insurance”, listed and traded on the Saudi market “Tadawul”, rose by 0.37% at the end of today’s session, Monday, to close at 26.85 riyals per share, after obtaining the approval of the General Competition Authority to complete the planned economic merger process with… “Buruj Mutual Insurance”.

Trading in Medgulf Insurance shares at that time occurred through 4,356 trading transactions, over 2.25 million shares, with a trading value of 61.34 million riyals.

The highest share price at that time was 27.8 riyals per share, while the lowest share price was 26.25 riyals per share.

The Mediterranean and Gulf Mutual Insurance and Reinsurance Company (Medgulf) and Burouge Mutual Insurance announced that they had obtained the approval of the General Competition Authority to complete the planned economic merger between them.

The two companies indicated on Monday that the merger process is still under study and no final or binding agreement has been reached between the two parties yet.

They added that if an official agreement is reached, the deal will be conditional on obtaining approvals from several parties, including the Insurance Authority, the Capital Market Authority, and the Saudi Tadawul, in addition to the approval of the shareholders of the two companies.

It is noteworthy that “Medgulf” and “Borouge” signed a non-binding agreement of understanding last July to study the feasibility of their merger. If the deal is approved to be implemented, this will be done by Medgulf acting as the merging company, while Borouge will be the company to be merged.