Alawwal Bank expects to receive regulatory approval “pretty soon” for its USD5bn (AED18.4bn) merger with Saudi British Bank (SABB). The lender will also seek vote of consent from shareholders by the end of this quarter, a top Alawwal Bank executive said. “The process is running very much on track and what we are going through now is the regulatory approvals,” said Soren Nikolajsen, managing director of Alawwal Bank. “All the filings have been done [with the regulators]. The EGM vote on the merger will probably happen towards the very end of 2Q19, he added. The deal is expected to be finalised by June 2019. It would, however, take about two years from the date of the formal merger to fully integrate the operations into a combined bank, Mr Nikolajsen said. There are 18 different work streams across all business areas being hammered out, some of which will be integrated relatively quickly. The back office operations and technology will take the longest, he added. The boards of the two banks have agreed on the initial terms, under which, Alawwal shareholders will receive 0.485 Sabb shares, valuing each Alawwal share at SAR16.3. (The National)
 
Alawwal Bank: SAR16.60 as of 24 Jan. 2019, Rating: Buy, TP: SAR18.00/share, MCap: USD5,060mn, ALAWWAL AB/1040.SE

Saudi British Bank: SAR37.70 as of 24 Jan. 2019, Rating: Buy, TP: SAR37.00/share, MCap: USD15,080mn, SABB AB/1060.SE