We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Valley Bank to acquire Bank Leumi’s US unit in merger agreement

17 2 1

After months of speculation, Israel’s Bank Leumi announced on Thursday that New Jersey-based Valley National Bancorp (Valley Bank) would acquire Bank Leumi USA, the bank’s United States operations, in a merger agreement that values the unit at approximately $1.2 billion.

Bank Leumi, one of Israel’s two largest banks, said that it is expected to report a profit of NIS 650-750 million ($203-$234 million) from the deal and would hold just over 14 percent of the merged bank stocks after the merger.

Approximately 90% of the proceeds for the transaction will be paid in the form of Valley common stock, with the remainder in cash, according to the announcement on Thursday.

Valley Bank has reported total assets of approximately $41 billion pre-transaction with a credit portfolio of about $32 billion, as of June this year. Profits for the first half of 2021 amounted to $230 million, the bank said.

Bank Leumi, meanwhile, reported total assets of $8.4 billion, total deposits of $7.1 billion, and gross loans of $5.4 billion, as of June. It operates five commercial offices in the US, in New York, Los Angeles, Palo Alto, Chicago,........

© The Times of Israel

Get it on Google Play