Saudi Banks NCB And Samba Plan Mega-Merger Worth $15 Billion

Saudi Banks NCB And Samba Plan Mega-Merger Worth $15 Billion

Two of Saudi Arabia’s largest banks, National Commercial Bank (NCB) and Samba n AMBC n Financial Group, are in talks which would see NCB take over its smaller rival in a deal worth up to $15.3 billion.n nThe two banks announced to the Saudi Stock Exchange (Tadawul) on June 25 they had entered a framework agreement to begin a reciprocal due diligence process and negotiate the terms of the deal.n nThe draft proposals released to date would see Samba investors receive newly issued shares in NCB in exchange for their existing shares. Up to 1.54 billion new shares could be issued which, based on the closing price of SR37.25 for each NCB share on June 24, would value the deal at SR57.4 billion ($15.3 billion).n nNCB is already the largest bank in Saudi Arabia, with total assets of some $135 billion at the end of last year, and this deal will further entrench its lead. Samba is the fifth largest lender in the country, with assets of some $68 billion. A merger would create the Gulf’s third largest bank by assets, after Qatar National Bank and the UAE’s First Abu Dhabi Bank, according to the Financial Times.n nThe two Saudi