Baker McKenzie advises on KSA bank merger

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Baker McKenzie is advising Saudi Arabian listed bank Alawwal bank on its agreement to merge with a fellow Saudi listed bank, The Saudi British Bank (SABB), in a share for share merger valued at approximately USD 4.9 billion.

The transaction is the first of its kind in the Saudi Arabia and one of the largest mergers of two listed companies in the Middle East. It will create Saudi Arabia’s third largest bank with assets of around USD 70 billion. The complex transaction is also the first merger being undertaken under Saudi Arabia’s recently overhauled Merger and Acquisition Rules. The merger agreement was signed on 3 October 2018 and the deal is expected to close during the first half of 2019.

The Baker McKenzie team was led by Corporate partner Mohammad Al Rasheed and included Riyadh-based Corporate associate Noura Alfahad.  The Riyadh team was supported by a London-based team led by Corporate Finance partners Helen Bradley and Melanie Howard.

Alawwal bank is largely owned by a consortium made up of RBS, Santander and a Dutch governmental entity, while SABB’s largest shareholder is HSBC. J.P. Morgan Saudi Arabia Company is acting as financial adviser to Alawwal bank and Goldman Sachs Saudi Arabia is acting as financial adviser to SABB.

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