DUBAI, United Arab Emirates (AP) — Saudi Arabia’s National Commercial Bank said Sunday 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.
The bank will control some $223 billion in assets and a market capitalization of $46 billion after the merger wins regulatory approvals and is completed, National Commercial Bank said in a filing on Riyadh’s Tadawul stock market announcing the deal.
The new bank will control a quarter of all banking in the kingdom, it said.
NCB will pay Samba a premium of 3.5% on the closing price of its stock Thursday in the deal, which will see it dissolve into the NCB brand.
The bank’s largest shareholders will be Saudi Arabia’s Private Investment Fund, the Public Pension Agency and the General Organization for Social Insurance, all government entities.
The two banks described the merger