Saudi Arabian lender National Commercial Bank (NCB) has begun initial discussions to merge with peer Riyad Bank.
The transaction is expected to form the Gulf’s third-biggest lender with $182 billion in assets.
National Commercial Bank shares rose 28 percent this year to trade near the highest level since they were sold in 2014 whereas Riyad Bank has advanced 44 percent this year.
Riyad Bank has a market value of $14 billion and National Commercial Bank has $38 billion.