Mon. Oct 26th, 2020

FILE - In this June 15, 2015, file photo, a Saudi man walks through the Tadawul stock exchange in Riyadh, Saudi Arabia. Saudi Arabia's National Commercial Bank said Sunday, Oct. 11, 2020, it will purchase rival lender Samba Financial Group in a deal valued at $14.8 billion, creating what would become the kingdom's largest bank. (AP Photo/Hasan Jamali, File)

FILE-In this June 15, 2015, file photo, a Saudi guy walks through the Tadawul stock market in Riyadh, Saudi Arabia. Saudi Arabia’s National Commercial Bank said Sunday, Oct. 11, 2020, it will purchase rival lender Samba Financial Group in a deal valued at $14.8 billion, developing what would become the kingdom’s biggest bank.

( AP Photo/Hasan Jamali, File) By JON GAMBRELL DUBAI, United Arab Emirates (AP)– Saudi Arabia’s National Commercial Bank said Sunday it will purchase rival loan provider Samba Financial Group in an offer valued at$ 14.8 billion, producing what would end up being the kingdom’s biggest bank.The bank will manage some$ 223 billion in properties and a market capitalization of$46 billion after the merger wins regulative approvals and is completed, National Commercial Bank said in a filing on Riyadh’s Tadawul stock exchange revealing the deal.The new bank will manage a quarter of all banking in the kingdom, it said.NCB will pay Samba a premium

of 3.5%on the closing rate of its stock Thursday in the offer, which will see it liquify into the NCB brand.The bank’s biggest investors will be Saudi Arabia’s Private Investment Fund, the Public Pension Firm and the General Company for Social Insurance, all federal government entities.The two banks explained the merger as fitting into the kingdom’s Vision 2030 plan, the brainchild of Saudi Arabia’s assertive Crown Prince Mohammed bin Salman. That strategy requires Saudi Arabia to ween itself off of depending on oil exports while creating brand-new jobs for its countless youths.”Saudi Arabia is going through a historical transformation with Vision 2030,”NCB chairman Saeed al-Ghamdi said in a statement.

“Our ambition is to create a nationwide champ that can help with the transformation imagined under Vision 2030 and develop a pioneer for next-generation banking services that nurtures tomorrow’s industry leaders.”NCB was Saudi Arabia’s very first bank to be formally certified in the kingdom back in 1953, produced out of 2 currency trading homes. Samba

outgrew Citibank, which established an existence in the oil-rich kingdom in 1955. The bank became Saudi American Bank following a royal decree in 1980, with Citibank slowly divesting with time till offering its last shares in 2004. The merger had actually been rumored for months. Rankings firm Moody’s says it will assist NCB turn into one of the world’s largest Shariah, or Islamic law, certified banks

along with fellow Saudi bank Al Rajhi and Kuwait Financing Home. It also comes as the kingdom faces both the coronavirus pandemic and oil rates being down to around$ 40 a barrel in the middle of a global financial slowdown.”A mix of lower oil prices, deteriorating financial conditions and fierce competition amongst banks is driving a new age of mergers and acquisitions in Saudi Arabia and across the broader Gulf area,”Moody’s stated in September. ___ Follow Jon Gambrell on Twitter at www.twitter.com/jongambrellAP.

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