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

May 17, 2018 11:45 am


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.

Read: This Saudi private sector is struggling, as economy tries to absorb shocks

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.

Read:Saudi pushing the envelope in drive to lead region’s technology sector 

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.

Also:

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.