Yoram Naveh, CEO of Clal Insurance (photo from Yoram Naveh’s Facebook page)
Clal Insurance acquires the credit card company Max in a huge deal of NIS 2.45 billion. The CEO of the Clal Insurance and Finance Group, Yoram Naveh, announced today the intention of Clal Holdings to acquire full ownership in the Max Group, from the American investment fund Warburg Pincus and its partners.
Clal Insurance has in fact signed a memorandum of understanding that will form the basis for further negotiations, until a binding agreement is signed. According to the agreement, the Max Group will be sold to Clal Holdings for an operating value of approximately NIS 2.47 billion. And upon receipt of the required regulatory approvals.With the completion of the transaction, Max will form an arm of Clal Holdings in favor of promoting competition in the field of credit, for small and medium-sized businesses and in the field of consumer credit.
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Yoram Naveh, CEO of the Clal Insurance and Finance Group: “The Clal Group today signed a memorandum of understanding, which is part of a strategic move aimed at expanding the group’s activities beyond the subsidiary’s concentrated insurance and finance activities, after examining several alternatives and choosing to move forward with the Max Group. A quality company managed with great professionalism, which in recent years has built a diverse and growing financial platform. Today, we join other moves that have already been made among the institutional bodies, which are becoming a significant factor in driving competition in the field of non-bank credit.
Clal recently published its financial results for 2021, the best since its inception, and I am glad that close to the publication of the results, and after the successful capital raising we made earlier this year, we present today our intention to strengthen the holding company with a new and complementary arm. The group’s next. ”
Haim Samet, Chairman of Clal Holdings and Clal Insurance: “The Memorandum of Understanding regarding the acquisition of Max is in line with the company’s ambition to create a new and valuable profitability center, in the holding company, alongside the extensive activity in the insurance fields. If and when the deal goes through, it will be a significant and important strengthening of the group’s activities and another tier that will bring value to the company’s stakeholders over time. ”
Yaron Bloch, Max’s chairman and senior consultant to Warburg Pincus in Israel: “In light of the company’s strong performance, various inquiries have been received in recent months from institutional and private entities interested in acquiring control of the company. We have chosen to focus on negotiations at the present time with the Clal Group due to the seriousness of its intentions, as reflected in the contacts between the parties and due to the strategic business adjustment to the Max Group.
“I believe that Max’s connection to the Clal Group will promote competition in the credit market and payments market in Israel, and will allow the public to offer a wide and varied fan of valuable products and competitive prices. Max with its advanced capabilities and close relationship with customers, private and business, is an excellent platform “In the Israeli market. I am happy to sign the memorandum of understanding, and hope to complete the negotiations in favor of signing a binding agreement, and later receive the necessary approvals for the completion of the transaction in the coming months.”
Clal’s market share in terms of gross earned premiums stands at about 15% of the insurance market, and the volume of assets managed by it stands at about NIS 286 billion (as of the end of December 2022). Clal is ranked (ilAA + stable forecast) by S&P Maalot, and Aa1.il (stable horizon) by Midroog.
As for the Max group. The group consists of Max, a payment and financial services company that issues and clears credit cards, non-consumer credit to the general public and small and medium-sized businesses, and Hyp, which deals with advanced payment solutions for businesses. Today, Max is the leading company in providing non-bank credit among credit card companies, with a portfolio of more than NIS 7 billion and is the fastest growing non-bank credit card turnover.
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