HSBC, RBS Saudi Arabian Ventures in Talks to Merge

  • RBS has been trying sell its 40% Alawwal Bank stake for years
  • Other regional lenders are merging amid low oil prices
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HSBC Holdings Plc and Royal Bank of Scotland Group Plc’s Saudi Arabia ventures are exploring a potential merger to create the kingdom’s third-largest lender with $78 billion in assets.

Alawwal Bank, which is 40 percent owned by RBS, plans to start initial talks with HSBC’s Saudi British Bank, according to a statement on Saudi stock exchange website Tuesday. Both lenders are based in Riyadh, with HSBC owning 40 percent of SABB.