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Bank Leumi reports on Sunday that the merger transaction of Bank Leumi USA with Valley National Bancorp On which. Following the merger, Leumi holds 14.2% of the merged company’s shares and is the largest shareholder, but not the controlling shareholder, in Bank Leumi USA. The transaction reflects Bank Leumi USA’s value of approximately $ 1.2 billion (approximately 140% of the capital The self).
Leumi states in its announcement that it will appoint two directors and oversees the board of directors of Leumi USA. Bank Leumi USA CEO Avner Mendelssohn will now serve as the Deputy Chairman of the Board of the merged company.
Along with the merger agreement, Leumi and Bank Valley National Bank (NASDAQ :), whose shares are traded on NASDAQ at a market value of about $ 5.5 billion, also signed a cooperation agreement regarding Leumi’s participation in credit to be provided by Valley National Bank and to provide banking services to customers. The two banks: Leumi’s significant holding in shares, ownership structure and cooperation agreement place Leumi in a position where it can realize its strategy to significantly expand its operations in the US market and provide unique services to US customers.
The merged bank, the 29th largest of the banks traded on the US stock exchange, has the ability to grow in business activity in a variety of strategic areas, including several areas in which Leumi USA has unique expertise, including high-tech, venture capital companies, real estate entrepreneurship. Along with Leumi Group’s branch business lines in the United States, many years of experience and quality manpower will also be significant growth engines for the merged bank.
According to Leumi CEO Hanan Friedman,
“With the completion of the transaction, our expansion capabilities throughout the United States are receiving a significant boost today – a breakthrough for the Bank of Israel. Already in the not too distant future it will be possible to realize the significant fruits of the merger and the unique value propositions that will follow for our customers. I thank our partners at Valley, led by Chairman and CEO Ira Robbins, and I am confident in our shared success. ”
Shares of Bank Vali National, traded on the Nasdaq, have fallen by about 5% since the beginning of 2022, while shares of Bank Leumi (TASE :), traded on the Tel Aviv Stock Exchange, have risen by 4.5% since the beginning, reflecting Leumi Group’s market value of more than NIS 50 billion.
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