DUBAI (S&P Global Ratings) June 28, 2020--S&P Global Ratings today said that the proposed merger of The National Commercial Bank (BBB+/Stable/A-2) and Samba Financial Group (Samba; BBB+/Stable/A-2) could strengthen Samba's business operations through stronger access to retail sector opportunities, and dilute exposure to Turkey in NCB's loan portfolio, which we view as a potential source of risk. The deal would create the largest bank in Saudi Arabia, with assets of about $215 billion (Saudi riyal 800 billion) at March 31, 2020, or about 30% of the system total. The banks have entered into a framework agreement to begin a reciprocal due diligence process and negotiate definitive and binding terms for a potential merger. Although the pricing range has been announced,
