Thursday, June 30, 2011

SAUDI ARABIA: SABB and HSBC cement alliance with new partnership


The Saudi British Bank (SABB) and HSBC, its international joint venture partner, have concluded a transaction that cements their long-standing and successful partnership. HSBC Saudi Arabia, the wholesale and investment banking business majority-owned by HSBC, is to be merged with SABB Securities Limited, SABB's wholly-owned brokerage and custody business.

Together the two companies, to be known as HSBC Saudi Arabia, will be a market-leading player in Saudi investment banking. SABB will have a 51% share of the new entity, and HSBC 49%, although HSBC will retain full management control. 

The new partnership will be a full service investment bank, undertaking activities in Asset Management, Brokerage, Investment Banking Advisory, Debt Capital Markets, Equity Capital Markets, Project Export Finance, Custody, and Investment Advisory Services)

Sheikh Khaled Suliman Olayan, Chairman of SABB said: "This transaction brings together the complementary businesses of SABB and HSBC, and unites them in an extremely strong venture. We look forward to extending the long and successful partnership we enjoy with HSBC and of maintaining for our customers the unrivalled service and international best practice that they are used to." 

Simon Cooper, CEO of HSBC Middle East and North Africa added: "This announcement underscores HSBC's commitment to its business in the Kingdom of Saudi Arabia, and to its joint venture partnership with SABB. Saudi is the largest market in the Middle East, and we are delighted to be able to cement our partnership with SABB and our presence in the Kingdom with this transaction."

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