SABB would own 51% of the new entity, to be known as HSBC Saudi Arabia, but HSBC would 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.
HSBC Middle East and North Africa CEO Simon Cooper said 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," Cooper said.
The merger, which is subject to regulatory approvals, is expected to complete by the end of 2011.
As at the end of last year, the combined businesses had gross assets valued at $188.4m.
