Bahrain National Insurance Company (BNI), a subsidiary of Bahrain National Holding Company (BNH), is in negotiations for the acquisition of a majority stake in Al Ahlia Insurance Company, a report said.

A statement by BNI said both boards were in discussions and as negotiations are in the early stages, there are no obligations set by the two companies as yet, reported the Gulf Daily News, our sister publication.

If discussions proceed, a group of major shareholders in Al Ahlia Insurance Company are expected to provide an offer to BNI, allowing it to buy Bahrain Bourse traded shares which make up more than 50 per cent of the total capital of Al Ahlia Insurance.

The outcome of the ongoing negotiations will need to be approved by the board of Al Ahlia Insurance as well as its shareholders.

Approvals by various official and regulatory authorities including Central Bank of Bahrain and Bahrain Bourse will also be needed in accordance with applicable laws, the statement added.

If the purchase goes ahead, this will allow both companies to manage expenses more efficiently.

They will also be able to take advantage of the capabilities of common administrative services and diversified products to better serve the competitive and challenging local insurance market.

The public will be kept informed on developments in a timely manner, according to applicable disclosure laws for companies listed on Bahrain Bourse. – TradeArabia News Service