Aljazira Takaful Taawuni Co. has received approval from the Saudi Central Bank for its proposed merger with Solidarity Saudi Takaful Co., Argaam reported.

The companies signed a binding merger agreement in August for a share swap deal that will see Aljazira Takaful acquire all of Solidarity Saudi's issued shares in exchange for 12.07 million new Aljazira Takaful shares at 10 Saudi Arabian riyals per share.

Aljazira Takaful will emerge as the surviving entity in the proposed merger and will assume Solidarity Saudi's integrated net assets and liabilities.

Aljazira Takaful and Solidarity Saudi are finalizing other regulatory approvals for the proposed transaction, which would be followed by the issuance of the merger circular and offer document for the approval of the companies' shareholders, according to the report.

As of Dec. 1, US$1 was equivalent to 3.75 Saudi Arabian riyals.