In a merger deal, Saudi Arabia’s National Commercial Bank (#NCB) made a statement on Sunday on purchasing rival lender #Samba Financial Group at a value of $14.8 billion.
According to the announcement by National Commercial Bank, the new bank will be in charge of around $223 billion in the assets, along with a market capitalization of $46 billion after the merger deal gets approvals. The merger deal will enable NCB to become one of the largest Islamic banks in the world, as per the Ratings agency Moody’s.
The deal marks as meeting the kingdom’s vision 2030 plan, made by crown prince Mohammed bin Salman and create job opportunities for the youth. In a statement, NCB Chairman Saeed al-Ghamdi said that the kingdom is going through a historic transformation with the Vision 2030, and their ambition is to facilitate the transformation and create a pioneer for the coming generations of banking services.
With a premium of 3.5%, the bank will make payments to Samba Group on Thursday next week, on the closing price. Additionally, the new merger bank will control a quarter of all banking in Saudi Arabia, along with the
National Commercial Bank’s biggest shareholders are listed as the General Organization for Social Insurance, the kingdom’s Private Investment Fund (PIF), Public Pension Agency, along with all the government entities.