Doha, Qatar–Gulf International Services (GIS) and Doha Insurance Group (DIG) have halted negotiations on a merger between Al-Koot Insurance and Reinsurance Company (Al-Koot), a wholly owned subsidiary of GIS, and Doha Insurance Group.
In a statement posted on Qatar Stock Exchange’s website, GIS said: “The preliminary negotiations that have taken place between the two parties regarding this potential merger deal, have not arrived at a common vision that would lead to an initial agreement that achieves the mutual interests of the shareholders of the two companies.”
“Accordingly, the two parties have decided to halt end negotiations and to withdraw completely from the proposed merger partnership deal.”
The management of both the parties expressed their appreciation to the regulatory authorities and other respective authorities, including Qatar Central Bank that supported in-principle the proposed merger.
Last August, the two announced that they intend to engage in initial negotiations on a potential all-share merger of Al-Koot Insurance and Reinsurance Company, a wholly owned subsidiary of GIS, with Doha Insurance Group.
The potential merger, as a joint strategic priority, would create one of the largest local insurance companies with highly competitive potential and financial strength, that could provide world-class insurance services in various segments, in line with Qatar National Vision 2030.
The potential merger would form a local champion with increased competitive advantages and provide better avenues to fulfill and enhance the potentials of growth and expansion both domestically and internationally.