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Video: Can SABB bank’s $5bn merger bid with Saudi Alawwal open doors to M&As?

Riyad Capital Chief Investment Officer Hans-Peter Huber discusses Saudi bank industry consolidation in the Middle East. He speaks on “Bloomberg Daybreak: Middle East.”

Saudi British Bank (SABB) and Alawwal Bank have agreed to merge, in a move that would create the Kingdom’s third-biggest lender with assets of around $77 billion, the institutions announced on Wednesday.

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Alawwal shares surged 10 percent on the announcement, while  SABB retreated 4.5 percent, as part of a wider sell-off on the Tadawul, said Arab News.

The merger, when completed, is the first major deal of its kind in the Kingdom’s for around 20 years.

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The agreement will see SABB, 40% owned by the UK’s HSBC, acquire Alawwal for $4.96 billion.

How does this impact the Saudi financial market, and mergers and acquisitions in other sectors like cement sectors, petrochemicals, retail and others?

Watch impressive video here.


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