Alawwal Bank’s to merger with The Saudi British Bank

Slaughter and May is advising Banco Santander, S.A. (“Santander”), a significant shareholder in Alawwal bank, in connection with the proposed merger of Alawwal bank with The Saudi British Bank.

The Merger will create Saudi Arabia’s third largest bank with a stock market capitalisation of approximately SAR 64.4 billion (USD 17.2 billion).

The binding $5bn merger agreement, which builds on a preliminary deal in May, is expected to complete in the first half of 2019. Until then, both banks will operate separately.

The Merger is conditional on, among other things, shareholder approval and certain regulatory approvals.

On completion, Sabb’s existing shareholders will own 73 per cent of the combined bank, with Alawwal shareholders holding 27 per cent. All assets and liabilities of Alawwal will be transferred to Sabb and the merged group will continue to use the HSBC brand. HSBC currently owns 40 per cent of Sabb.

Slaughter and May is supporting Santander’s in-house team led by David Mora (corporate development), Pilar Salinas Rincón (legal counsel) and Ana Nuevo (legal counsel).

Slaughter and May is advising Banco Santander on the deal with a Corporate team led by Christian Boney (partner, in picture), alongside Warwick Brennand (associate); on Tax law advising Dominic Robertson (partner) and Deeksha Rathi (associate).

 

Involved fees earner: Christian Boney – Slaughter and May; Warwick Brennand – Slaughter and May; Dominic Robertson – Slaughter and May; Deeksha Rathi – Slaughter and May;

Law Firms: Slaughter and May;

Clients: Banco Santander Sa;