(Bloomberg) --
National Commercial Bank, Saudi Arabia's largest lender by assets, signed a framework agreement to acquire rival Samba Financial Group in what could become the biggest banking takeover this year.
NCB will pay a premium of as much as 27.5% to Samba's closing price on Wednesday, according to a statement on the Saudi stock exchange on Thursday. NCB will issue new shares to Samba shareholders, it said.
Saudi Bank NCB Said to Mull Deal for $13 Billion Rival Samba (2)
Saudi Arabia has been taking steps to shore up its banking sector from the double whammy of the coronavirus shock and lower oil prices. Lenders in the world's largest oil exporter -- already dealing with weak private sector loan growth -- are expected to be hit hard as lockdown measures and lower government spending impact earnings and increase defaults.
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