M&A WATCH-

#1- The Mediterranean and Gulf Ins. and Reins. Company’s (MedGulf) shareholders signed off on the merger with Buruj Cooperative Ins., according to a Tadawul disclosure yesterday. Buruj’s shares will be delisted from Tadawul, and new MedGulf shares will be allocated to Buruj shareholders. Tadawul halted trading on Buruj stocks yesterday to start the delisting process, according to a Tadawul disclosure.

REMEMBER- The transaction values Buruj at SAR 584.6 mn and will create the fourth-largest ins. player in the Kingdom by gross written premiums (GWP), with a combined SAR 4.1 bn in GWP and an estimated 5.4% market share based on 2024 data.

Looking ahead: The merger is a strategic move to strengthen solvency and create a larger player in the Saudi ins. Market, MedGulf CEO Omar Al Mahmoud told Al Arabiya. The new entity — Saudi Arabia’s largest ins. merger to date — will drive expansion in retail and SME segments, support digital transformation, and improve margins through cost synergies and regulatory exemptions, Al Mahmoud added.

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#2- Dallah Healthcare eyes fully acquiring Care Shield: Dallah Healthcare signed a non-binding MoU with Growth Avenue Investment Company — a wholly owned subsidiary of Maharah Human Resources Company — to acquire its 41.36% stake in Care Shield Holding Company (Kingdom Hospital and Consulting Clinics), according to two disclosures to Tadawul (here and here).

What’s next? The agreement allows Dallah to conduct due diligence and negotiate a binding agreement before the MoU’s expiry on 30 November. If completed, Dallah would become the sole owner of Care Shield. Dallah has appointed Khoshaim & Associates to provide counsel. The size of the transaction has yet to be determined.

IN RELATED NEWS- Fakeeh Health eyes a majority stake in another Dallah unit: Fakeeh Health entered preliminary talks to acquire a majority stake in Dr. Mohammed Bin Rashid Al Faqih & Partners Company, in which Dallah holds a 31.21% stake, according to two disclosures to Tadawul (here and here). The discussions remain at an early stage and are under review by Dallah’s board. Fakeeh Health’s board also approved the start of negotiations for the potential acquisition.

DEBT WATCH-

Leen Alkhair Trading Company launched its SAR 10 mn murabaha sukuk offering, with the subscription period running until 7 December, it said in a disclosure to Tadawul. The SAR-denominated offering is available to both individual and corporate investors registered on the Dinar Investment Company platform, which is acting as the sole arranger for the issuance. The sukuk has a par value of SAR 1k, which is also the minimum subscription amount. The program offers various maturity terms, ranging from 3 to 30 months.

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