Saudi British Bank (SABB) and rival Alawwal Bank are merging to create a lender with a market capitalization of about $17.2 billion.
The deal values Alawwal Bank, partly owned by a consortium including Royal Bank of Scotland, at $5 billion. The combined bank will have around 16 percent of the home loans market.
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.
The merger, which is expected to complete during the first half of 2019, is subject to regulatory approvals.