Baker McKenzie Assists Buruj Cooperative in its Successful Merger with Medgulf

Baker McKenzie has advised Buruj Cooperative Insurance Company ("Buruj") on its successful merger with the Mediterranean and Gulf Insurance and Reinsurance Company ("Medgulf"), which was approved by the general assemblies of both Buruj and Medgulf on 23 October 2025.

Under the terms of the transaction, Buruj will be merged into Medgulf, with all of Buruj's rights, liabilities, assets, and contracts being subsumed by Medgulf. In exchange, Medgulf will issue 33,157,894 new ordinary shares, each with a nominal value of SAR 10, to Buruj's shareholders.

"This transaction reflects the growing momentum of consolidation in the Saudi insurance sector, as companies seek to build scale, enhance competitiveness, and deliver greater value to policyholders and shareholders alike," said Nadine Nassar, Senior Counsel at Baker McKenzie Saudi Arabia. "We are proud to have supported Buruj in this strategic agreement."

This public merger is expected to create a stronger, more resilient insurance platform with enhanced operational capabilities and broader customer reach across the Saudi market. It represents a landmark achievement for Buruj, being the first successful public merger completed under the newly established framework of the Insurance Authority - setting a precedent for future transactions in the sector. It also marks a significant milestone for Buruj, enabling its shareholders to benefit from enhanced scale and operational synergies through integration with Medgulf.

Baker McKenzie acted as lead counsel to Buruj, advising on all legal aspects of the transaction. The Firm's team was led by Nadine Nassar, with key support from Lama Alhabib, Thamer AlZayer, and Alma Alghamdi.