HSBC to Cement Lead in Saudi Arabia With $5 Billion Bank Merger - Bloomberg

HSBC to Cement Lead in Saudi Arabia With $5 Billion Bank Merger - Bloomberg:

"HSBC Holdings Plc is set to reaffirm its position in Saudi Arabia with the takeover of Royal Bank of Scotland Group Plc’s local venture as lenders bet on the kingdom’s ambitious plans to transform its economy.

In the country’s first bank merger in almost 20 years, HSBC affiliate Saudi British Bank offered to take over RBS-backed Alawwal Bank in a $5 billion stock deal. The deal would make SABB the country’s third-biggest lender.

“For HSBC, this is in line with their broader strategy - the opportunities in Saudi Arabia are humongous and they’re not the only ones to realize that,” said Aarthi Chandrasekaran, vice president at Shuaa Capital. “They want to capitalize on their first mover advantage from the international space.”"



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