Clifford Chance in cooperation with Abuhimed Alsheikh Alhagbani Law Firm (AS&H) is advising the Saudi British Bank (SABB) on its proposed merger with Alawwal Bank.
A binding merger agreement was entered into on 3 October 2018. The proposed merger, which is subject to shareholder and regulatory approvals, would create the third-largest bank in Saudi Arabia with total assets of approximately US$77 billion.
The Financial Sector Development Programme is one of the central strategic pillars of Vision 2030. The proposed merger will deliver a bank that is large, ambitious, innovative and strong, an example of the type of institution that will enable Vision 2030 to become a reality.
The combined bank will be a leader in corporate banking, foreign exchange, cash management and trade finance, with a strong retail franchise underpinning aspirations to be Saudi Arabia's leader in wealth management, supported by innovative online and mobile services.
SABB traces its origins in Saudi Arabia back almost 70 years, during which time it has been an active partner supporting Saudi Arabia's economic growth and social development. SABB is an associate of the HSBC Group and its vision is to be the leading international bank in Saudi Arabia.
Alawwal Bank is Saudi Arabia's oldest bank, with a 92-year legacy of banking innovation in the Kingdom.
The Clifford Chance and AS&H team was led by Mohammed Al-Shukairy (Partner, Clifford Chance) and Mansoor Alhagbani (Partner and Head of Capital Markets and Financial Regulatory, AS&H).
A large team of M&A lawyers and other specialists from our Dubai and Riyadh offices are working on the transaction, including a core team comprising Daniel Boyle, Ashley Cywicki, Amro Bakhaidar and Rizwan Butt.
David Dew, Managing Director of SABB, commented:
"This is a highly significant transaction, not only for SABB and Alawwal, but also more broadly for the development of the economy in the Kingdom, as it executes the ambitious Vision 2030 transformation plan. The proposed merger is a landmark transaction for the Kingdom, and a robust structure and process was therefore critical The expertise and proactive management of issues brought by the legal teams was instrumental achieving this."
Maged Latif, Senior Adviser to the Board of SABB, added:
"The team at Clifford Chance and AS&H has been a trusted adviser on this transaction from the very beginning. The firm brought highly relevant international public company and bank M&A experience, applied in a manner that was very effective in the context of the regulatory framework in Saudi Arabia. The proposed merger is unprecedented in the Kingdom, and the firm's ability to provide real time, technically robust and commercially-focused advice was critical."
Mohammed Al-Shukairy noted "We thoroughly enjoyed working with SABB on this transaction and look forward to moving expeditiously to closing. Clifford Chance consistently advises on transactions that help shape deal structuring and pave the way for public company M&A in the region."
Clifford Chance, for example, previously advised Sorouh on its US$15 billion merger with Aldar Properties, which was the first ever statutory merger in the United Arab Emirates. The firm also recently advised on the US$2.4 billion sale of Americana, the first major takeover of a Kuwaiti publicly listed company.
Mansoor Al Hagbani added: "This proposed merger sets the blueprint for greater consolidation in the Kingdom amongst public listed companies, in a number of sectors, and we are pleased to have a played a role in this."
Clifford Chance has also acted on most bank M&A deals in the region recently, including for clients such as Emirates NBD, Citibank, HSBC, ABN Amro, QNB, National Bank of Kuwait and others.
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For more information about Clifford Chance see www.cliffordchance.com.
For further information about AS&H in co-operation with Clifford Chance see www.ashlawksa.com.
For further information about this release contact Roshan Khan on +971 4 503 2661 or roshan.khan@cliffordchance.com
Clifford Chance is one of the world's pre-eminent law firms with significant depth and range of resources across five continents. As a single, fully integrated, global partnership, we pride ourselves on our approachable, collegiate and team based way of working. We always strive to exceed the expectations of our clients, which include corporates from all the commercial and industrial sectors, governments, regulators, trade bodies and not for profit organisations. We provide them with the highest quality advice and legal insight, which combines the firm's global standards with in-depth local expertise.
Clifford Chance was ranked 'Band 1' in more cross-border tables than any other firm in the Chambers Global 2018 Directory. This independent analysis focuses on firms' legal ability, professional conduct, client service, and commercial awareness, and these rankings provide outstanding recognition for the firm's breadth of expertise and consistency of quality across global markets.
Abuhimed Alsheikh Alhagbani Law Firm (AS&H) in co-operation with Clifford Chance is Saudi Arabia's leading law firm. It commenced operations in November 2016 and delivers world class legal services in the Kingdom of Saudi Arabia. AS&H in co-operation with Clifford Chance has had a long term presence in the market: between 2014 – 2016 as Clifford Chance Law Firm in Saudi Arabia; and between 1998 – 2014 as Al-Jadaan & Partners Law Firm in co-operation with Clifford Chance.
AS&H in co-operation with Clifford Chance has eight partners (of whom four are seconded from Clifford Chance), more than any other law firm in the Kingdom, offering Saudi and international clients the greatest depth of top Saudi and internationally qualified foreign lawyers as well as continuity and stability. The team's cutting edge work and commitment to clients has been consistently recognised by all the major legal directories and commentaries and the team has won more awards than any other Saudi law firm.
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