AlAhli Commercial Bank (the largest Saudi bank by assets) signed a framework agreement with Samba Financial Group (one of the largest banks in Saudi Arabia), to start studying the necessary professional care and negotiating final and binding provisions regarding a possible merger deal between the two banks.
The parties are likely to sign the final agreements of the potential deal if they reach an agreement no later than four months after the announcement, while the deal is not expected to result in the forced layoffs.
The two parties agreed non-bindingly and in accordance with the provisions of the Framework Agreement, that the merger (the AlAhli Bank) and the merger (Samba Financial) work in accordance with the provisions of the Companies Law and the Mergers and Acquisitions Regulations issued by the Board of the Capital Market Authority and other relevant laws and regulations.
This planned merger, which will produce the largest commercial bank in the region, is the fourth merger in the history of Saudi banks, the most recent of which was the merger between the Saudi British Bank and SABB, which took place last year 2019, whereas the first merger cases were recorded in 1996 between two banks, "Saudi Cairo" and "United Saudi Bank".
Source (Al-Sharq Al-Awsat newspaper, Edited)
