The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) and Buruj Cooperative Insurance Co. signed a non-binding memorandum of understanding (MoU) to evaluate the feasibility of a merger.
The MoU was signed on July 27, 2024, and is effective from the signing date until the completion of the potential deal, or one party’s termination of negotiations, or the end of a period of one year from the signing date, whichever is earlier. The MoU’s obligations, including confidentiality, continue for three years. According to the MoU, MEDGULF will be the merging company and Buruj will be the merged company, through a share-swap deal. MEDGULF will raise its capital by issuing new shares to Buruj shareholders, based on the agreed swap ratio.