Riyadh – Mubasher: Bawan Company announced on Wednesday.the cancellation of the potential merger between two of its subsidiaries.

On 19 June 2019, United Transformers Electric Company and United Technology of Electric Substations and Switchgears Company signed a conditional merger agreement. The two subsidiaries are 85.5%-owned by Bawan.

Bawan said it “found that it would not be feasible to proceed with the merger. As a result, shareholders in the parties to the merger agreement issued the necessary resolutions to cancel the merger, and the necessary approvals were obtained from the Ministry of Commerce,” according to a bourse disclosure.

Bawan does not expect the merger cancellation to have a negative effect on its financial position.