Saudi authority approves SABB-Alawwal merger, other acquisitions

The Saudi General Authority for Competition (GAC) on Thursday approved Saudi British Bank’s (SABB) planned acquisition of Alawwal Bank, according to an official statement.

GAC also approved the economic concentration arising from the planned merger of Saudi International Petrochemical Co. (Sipchem) and Sahara Petrochemical Co. and also the proposed acquisition deal of Bawan Co. and Arnon Plastic Industries Co. 

SABB recently obtained the approval of the Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, on its potential merger with Alawwal Bank.

In October 2018, SABB and Alawwal Bank inked a merger agreement to create Saudi Arabia’s third-biggest lender with a market capitalization of about $17.2 billion.

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, Argaam previously reported.