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NCB, Samba Move Forward with Major Merger Plan

NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
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NCB, Samba Move Forward with Major Merger Plan

NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)

Samba Financial Group and National Commercial Bank (NCB) are moving forward at a quick pace with the biggest merger of its kind in the Middle East.

Saudi Arabia's Capital Market Authority (CMA) gave the green light for NCB to increase its capital from SAR30 billion ($8 billion) to SAR 44.7 billion ($11.9 billion), through issuing 1.478 billion ordinary shares.

The move aims to merge Samba Financial Group into NCB by transferring the former's assets and liabilities to the latter under share swap.

NCB will publish the capital hike circular within sufficient time before holding its extraordinary general meeting.

The market regulator approved the proposed offer timetable, as well as the publication of the merger offer submitted by NCB. The offer will be published to Samba shareholders within sufficient time before holding its extraordinary general meeting.

If NCB shareholders approve the capital increase, and Samba shareholders accept the merger offer in their extraordinary general meetings, the new shares will be issued to Samba shareholders who are registered at the Securities Depository Center (Edaa).

In addition, Samba shares will be delisted from Tadawul after the merger decision becomes effective.

CMA said shareholders must be informed of the circular and the offer and should study them carefully in order to reach the right decision when voting.

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China Slams US Sanctions on Oil Refinery in Shandong

A view of the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside their headquarters in Vienna, Austria, November 30, 2023. Reuters
A view of the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside their headquarters in Vienna, Austria, November 30, 2023. Reuters
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China Slams US Sanctions on Oil Refinery in Shandong

A view of the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside their headquarters in Vienna, Austria, November 30, 2023. Reuters
A view of the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside their headquarters in Vienna, Austria, November 30, 2023. Reuters

Oil prices settled higher on Friday and recorded a second consecutive weekly gain as fresh US sanctions on Iran and the latest output plan from the OPEC+ producer group raised expectations of tighter supply.
Brent crude futures rose 16 cents, or 0.2%, to settle at $72.16 a barrel. US West Texas Intermediate crude futures rose 21 cents, or 0.3%, to $68.28.
On Thursday, the US Treasury announced new Iran-related sanctions, which for the first time targeted an independent Chinese refiner among other entities and vessels involved in supplying Iranian crude oil to China.
For its part, China on Friday slammed US sanctions on Chinese companies imposed over imports of Iranian oil.
Beijing has always opposed the use of “illegal unilateral sanctions” and “long-arm jurisdiction” and called on the US to “stop interfering with and undermining the normal trade and economic cooperation between China and Iran,” Chinese Foreign Ministry spokesperson Mao Ning told a news conference in Beijing.
“China will take all measures necessary to firmly safeguard the lawful rights and interests of our companies,” she added.
RBC Capital Markets LLC analysts including Brian Leisen said in a note on Friday, “We see this as a clear risk escalation for physical flows for the region, though today’s moves stopped short of a full physical impediment to the illicit Iranian oil trade into China.”
They added, “We think it reasonable that the risk premium here is taken more seriously.”
It was the fourth round of sanctions on Iran's oil sales since President Donald Trump's February call for “maximum pressure” on Tehran, including efforts to drive its crude exports to zero.
Analysts at ANZ Bank said they expect a 1 million barrels per day (bpd) reduction in Iranian crude oil exports because of tighter sanctions. Vessel tracking service Kpler estimated Iranian crude oil exports above 1.8 million bpd in February.
Oil prices were also supported by the new OPEC+ plan for seven members to cut output further to compensate for producing more than agreed levels. The plan would represent monthly cuts of between 189,000 bpd and 435,000 bpd until June 2026.
OPEC+ this month confirmed that eight of its members would proceed with a monthly increase of 138,000 bpd from April, reversing some of the 5.85 million bpd of output cuts agreed in a series of steps since 2022 to support the market.
“While the group shares a plan for compensation cuts, it certainly doesn’t mean members will follow it. A handful of members have consistently produced above their target production levels,” ING analysts said in a note on Friday.
Separately, a new explosion rocked an oil depot in Russia's southern Krasnodar region on Friday where firefighters had been trying to extinguish a blaze that had broken out on Tuesday after a Ukrainian drone attack hours after Putin spoke to Trump.
“During the extinguishing process, due to depressurisation of the burning tank, there was an explosion of oil products and release of burning oil,” Russian regional authorities said on the Telegram messaging app
The depot, near the village of Kavkazskaya, is a rail terminal for Russian oil supplies to a pipeline linking Kazakhstan to the Black Sea. Russia's foreign ministry said on Thursday that Ukraine had already violated a proposed ceasefire on energy sites by attacking the depot.