Saudi British Bank (SABB), the HSBC Holdings affiliate, on Wednesday announced that it has obtained all required regulatory approvals for its proposed merger with Alawwal Bank.
The plan to create the Gulf kingdom's third largest bank was first announced last year but now it has the approval of the Capital Market Authority, a statement said.
SABB said it will invite shareholders to consider and approve the merger at an extra-ordinary general meeting on May 15.
SABB added in the statement that it believes that the merger will benefit all of its customers today and in the future.
Saudi Arabia’s banking landscape is changing with lenders exploring mergers.
The kingdom’s biggest lender, National Commercial Bank, in December announced the start of talks with Riyad Bank.
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