Saudi British Bank's (SABB) board decided to start initial discussions with Alawwal Bank to study a possible merger between the two banks.
Entering in such discussions does not necessarily mean that the merger will take place between the two parties, according to a bourse filing on Tuesday.
The bank noted that in case of reaching an agreement, it will subject to the approval of the relevant regulatory authorities in Saudi Arabia and the extraordinary general meeting (EGM) of both banks, among other procedures.
Alawwal Bank has coordinated with the Saudi Arabian Monetary Authority (SAMA) in relation to the merger requirements prior to the commencement of the discussions, the statement noted.
"The bank does not expect that the proposed merger will, if completed, result in any involuntary layoff of employees," the filing stated.
On Wednesday, the Saudi British Bank and Alawwal Bank topped the hikes of the Saudi Stock Exchange (Tadawul) after their possible merger announcement.
By 10:45 am KSA time, Alawwal led the green zone and surged 9.26% to SAR 11.45, while SABB came second and rose 4.77% to SAR 23.05.
Alawwal achieved SAR 40.7 million in liquidity by exchanging 3.6 million shares while the turnover of SABB reached SAR 19.87 million through exchanging 861,560 shares.
Meanwhile, the main index of Tadawul added 0.13% or 9.14 points to stand at 6,925 points.
All Rights Reserved - Mubasher Info © 2005 - 2022