RIYADH: SABB Takaful has received the Saudi Central Bank’s approval for the merger with rival insurer Walaa Insurance, following a binding agreement between both parties last February.

The execution of the transaction remains subject to obtaining regulatory approvals and votes of the extraordinary general assemblies, according to a bourse filing.

Upon completion of the deal, SABB Takaful’s assets, liabilities, and rights will be transferred to Walaa Insurance and the former will cease to exist.

Walaa Insurance will see its share capital jump to SR850 million ($227 million), out of which 24 percent will be held by SABB Takaful’s shareholders.

The merger will be conducted through a share swap where Walaa will issue 0.6 shares against each share issued by SABB Takaful.