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Wednesday, 26 April 2017

HSBC, RBS Saudi Ventures in Talks to Form $78 Billion Lender - Bloomberg

HSBC, RBS Saudi Ventures in Talks to Form $78 Billion Lender - Bloomberg:

"HSBC Holdings Plc and Royal Bank of Scotland Group Plc’s Saudi Arabia ventures are exploring a potential merger to create the kingdom’s third-largest lender with $78 billion in assets. Alawwal Bank, which is 40 percent owned by RBS, plans to start initial talks with HSBC’s Saudi British Bank, according to a statement on Saudi stock exchange website Tuesday. Both lenders are based in Riyadh, with HSBC owning 40 percent of SABB. The negotiations come as banks grapple with how to approach the Middle East’s biggest economy, which is embarking on an unprecedented diversification and privatization plan but still blocks foreign control of local banks. The combined entity would be the kingdom’s biggest after National Commercial Bank and Al Rajhi Bank, and follows the merger of other regional lenders as they battle with sustained low oil prices, slower economic growth and a decline in asset quality."



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