Dubai, United Arab Emirates (CNN) – National Commercial Bank and Samba Financial Group in Saudi Arabia announced on Tuesday that the shareholders of the two banks will vote to merge and establish a single power in the Kingdom.
The shareholders of the National Bank and Samba Group voted by a large majority to approve the merger of the two banks during the extraordinary general assembly meeting on March 1, after obtaining all the necessary regulatory approvals from the Saudi Central Bank, the General Authority for Competition, and the Saudi Stock Exchange, Tadawul.
The Saudi Press Agency said in a statement that the new bank will be called “Al Ahli Bank of Saudi Arabia”, and it is planned that the bank will start its operations under the organizational structure and the new name starting April 1 of 2021.
The merger is expected to contribute to achieving great value for shareholders, customers and employees, as well as “enhancing the contribution of the banking sector in supporting social and economic development,” according to the Saudi Press Agency.
The merger will also facilitate trade and enhance cash flows to and from the Kingdom through regional and global markets. The Chairman of the National Commercial Bank, Saeed bin Mohammed Al-Ghamdi, says that the new bank “will elevate the Saudi banking sector to new heights.”
The National Commercial Bank will increase its capital from about $ 7.9 billion to about $ 11.9 billion, to issue new shares to Samba Group shareholders. After the merger, Samba shareholders will receive 0.739 new shares in National Commercial Bank for every share they own in the group.
Upon the merger, the shares of Samba Group will be canceled from the Saudi market, as all of its assets will be transferred to the National Bank of Saudi Arabia.
The merger is expected to make the new bank, the largest bank in Saudi Arabia, with a market value of about $ 46 billion.