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.
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.
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?
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