Following the merger of Leumi USA with Valley National Bancorp, the bank will be the 29th largest in the US, Leumi will hold 14.2% and will be the largest shareholder in the bank with the ability to grow in business activity in a variety of strategic areas.
Bank Leumi announces that Bank Leumi USA’s merger transaction with Valley National Bancorp, announced by Leumi in September 2021, has been completed. Following the merger, Leumi holds 14.2% of the shares and is the largest shareholder in the merged bank – but not the controlling shareholder. The deal reflects for Bank Leumi USA a value of about $ 1.2 billion about 140% on equity.
Leumi will appoint two directors and observe the board of directors. Bank Leumi USA CEO Avner Mendelssohn will now serve as Deputy Chairman of the Board.
Along with the merger agreement, Leumi and Valley also signed a cooperation agreement regarding Leumi’s participation in the credit to be provided by Valley and the provision of banking services to the customers of the two banks. Leumi’s significant holding in the shares, the ownership structure and the 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 a number of 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.
Leumi CEO Hanan Friedman: “With the completion of the deal, our expansion capabilities throughout the United States are receiving a significant boost today – a breakthrough for the Bank of Israel. “I thank our partners at Valley, led by Chairman and CEO Ira Robbins, and I am confident in our shared success.”