SABB, Alawwal merger likely to complete in H1 2019, says chairman

Saudi British Bank (SABB) is seeking to finalize a merger deal with Alawwal Bank in the first half (H1) of 2019, pending regulatory approvals, AlRiyadh newspaper reported, citing SABB chairman Khaled Suleiman Al-Olayan.

“The merger talks have already reached an advanced stage,” Al-Olayan noted.

He expressed optimism about the potential merger completion, as both entities are conducting a number of activities and workshops in line with a certain business plan.

In October 2018, SABB and Alawwal Bank inked a merger agreement to create Saudi Arabia’s third-biggest lender with a market capitalization of about $17.2 billion.

On completion of the merger, SABB’s existing shareholders will own 73 percent of the combined bank and Alawwal’s shareholders will own 27 percent on a fully diluted basis, Argaam previously reported.