DEAL: Saudi British Bank’s statutory merger with Alawwal Bank

Author: Amélie Labbé | Published: 29 Nov 2018

Saudi British Bank's (SABB) takeover of Alawwal bank is the first in Saudi Arabia to be carried out under new rules governing public M&A transactions.

While the previous Companies Law, dating back to 2007, made it possible for companies to merge, rules surrounding the combination of listed companies were unclear.

The new 2017 Merger and Acquisition Regulations take inspiration from the framework used for private company M&A and make it easier for public companies to merge – either by way of absorption or through the formation of a new company.

The $4.9 billion share for share deal will see SABB take over the all rights, liabilities and obligations of Alawwal bank at an agreed ratio. According to regulatory filings with Tadawul, Alawwal Bank shareholders will receive 0.48535396 new SABB shares for each Alawwal Bank share. When the deal closes, in the first half of 2019, SABB’s existing...