HSBC Holdings is proposing to merge its Saudi Arabian unit, Saudi British Bank (SABB) with Royal Bank of Scotland Group’s Alawwal Bank. Such a merger would create the country’s third-largest lender with $78 billion in assets. The merger may see HSBC taking over RBS’s stake in the merged entity later, thus allowing RBS an exit from Saudi Arabia. HSBC is already one of the most active international investment banks in the kingdom through its local unit – HSBC Saudi Arabia. The HSBC unit has assets worth $49.6 billion against Alawwal’s $28 billion.
