National Commercial Bank and Samba Financial Group Merger to Create Arab Region’s Third Largest Bank

Saudi Arabia’s biggest Shariah-compliant lender, National Commercial Bank (NCB), announced plans to merge with Samba Financial Group (SFG), in a deal expected to create the third-largest banking entity in the Middle East with combined assets worth USD 223 billion (amounting to roughly one-third of Saudi Arabia’s total banking sector assets).

Subject to required regulatory and shareholder approvals, the merger is expected to be completed in 2021, with the new bank holding around a 25% market share of retail and corporate banking in Saudi Arabia.

Upon completion, NCB’s current shareholders will own 67.4% of the merged entity, with SFG’s shareholders holding th...