Riyadh –Mubasher: 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, amongst 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.
