Saudi banks reach $5B merger deal, kingdom's first since 1999

Business 5/16/2018, 12:25 PM
Saudi banks reach $5B merger deal, kingdom's first since 1999

Saudi British Bank (SABB) and Alawwal Bank have reached a preliminary deal worth $5 billion in what is Saudi Arabia's first bank merger in almost 20 years, the FT reported on Wednesday. The agreement, if completed, would create Saudi Arabia's third-largest lender with assets worth $77 billion.

According to the deal, SABB, which is 40% owned by British HSBC, is to acquire its smaller rival Alawwal for around $5 billion. The deal would also give Alawwal shareholders 0.485 SABB shares for each share of Alawwal, which is owned by a consortium led by Royal Bank of Scotland. The merger agreement would thus give a 28.5% premium to Alawwal shares compared to their value on the last trading before the announcement was made.

Breaking the News / FH

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