Saudi Arabia’s largest bank said to chase global acquisitions

Sources say Saudi National Bank, the lender with a market value of $82bn, is studying potential deals in Europe and Asia



Saudi Arabia is working on an ambitious plan to give the kingdom’s biggest bank a global footprint through major overseas acquisitions, people with knowledge of the matter said.

The oil-rich country wants Saudi National Bank, the lender with a market value of $82 billion created through a merger more than a year ago, to boost its presence outside the kingdom, according to the people.

The bank has been studying potential purchases of financial institutions in Europe and Asia, the people said, asking not to be identified because the information is private.

Saudi National Bank executives have been brainstorming about potential targets and aim to present the contours of a dealmaking strategy to the board in the next few months, the people said.

The lender could make major acquisitions with backing from its largest shareholder, the Saudi sovereign wealth fund, according to the people.

Wall Street advisory firms, excited at the prospect of a deep-pocketed buyer hunting for cross-border deals, have already started pitching opportunities ranging from a takeover of Credit Suisse Group to a purchase of emerging markets-focused Standard Chartered, the people said.

DBS Group Holdings, Southeast Asia’s largest bank, and Swiss wealth manager Julius Baer Group have also been mooted as possibilities, the people said.


Saudi Crown Prince Mohammed bin Salman.


The government is encouraging the largest Saudi firms to expand their global footprint as part of Crown Prince Mohammed bin Salman’s Vision 2030 initiative to diversify the economy. A strong banking sector able to finance new industries is seen as key to efforts to boost the dynamism of the private sector and accelerate growth.

Saudi National Bank is still working out which areas of its operations it wants to bulk up, and it will only start analyzing potential targets in detail following the outcome of that review, the people said.

It’s unclear if it will pursue some of the more ambitious acquisitions being suggested, or if it will ultimately seek smaller purchases or focus on organic growth.

Any acquisition plans could be hindered by Saudi National Bank’s relative inexperience on the global stage, as well as potential regulatory hurdles. It was created through a combination of National Commercial Bank and rival Samba Financial Group.

That merger was only completed last month, and Saudi National Bank may wait until integration of the businesses has bedded down before looking to do another deal.
The government is encouraging the largest Saudi firms to expand their global footprint as part of Crown Prince Mohammed bin Salman’s Vision 2030 initiative to diversify the economy. A strong banking sector able to finance new industries is seen as key to efforts to boost the dynamism of the private sector and accelerate growth.

Saudi National Bank is still working out which areas of its operations it wants to bulk up, and it will only start analyzing potential targets in detail following the outcome of that review, the people said.

It’s unclear if it will pursue some of the more ambitious acquisitions being suggested, or if it will ultimately seek smaller purchases or focus on organic growth.

Any acquisition plans could be hindered by Saudi National Bank’s relative inexperience on the global stage, as well as potential regulatory hurdles. It was created through a combination of National Commercial Bank and rival Samba Financial Group.

That merger was only completed last month, and Saudi National Bank may wait until integration of the businesses has bedded down before looking to do another deal.
Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund, was instrumental in orchestrating the deal and has been increasingly active overseas as it looks to support Vision 2030 projects.

The fund has kicked off discussions about how to monetise a roughly $90 billion stake in oil giant Aramco as it seeks to raise money for its ambitious investment goals, Bloomberg News reported this week.

Representatives for Saudi National Bank and PIF didn’t immediately respond to requests for comment. Representatives for Credit Suisse, Julius Baer and Standard Chartered declined to comment, while a spokesperson for DBS couldn’t be reached for comment outside normal business hours in Singapore.

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