Bank Leumi USA's merger transaction with Valley National Bancorp has been completed

Bank Leumi announced that Bank Leumi USA's merger transaction with Valley National Bancorp 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 a value of about $ 1.2 billion for Bank Leumi USA (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.
The sale of Leumi USA is a controversial step since Leumi received a handsome value for its American operations, but on the way it liquidated its independent operations there. Work, but at some point will return to Israel and therefore they are interested in an Israeli bank account or of an Israeli brand that can communicate with Israel in the future.
Leumi actually gave up this presence and left the field vacant to Bank Hapoalim, Mizrahi and the largest Israeli player in the United States - Discount.
Leumi estimates that they will be able to continue marketing in the United States under the Wally brand, but other banks report that since Leumi announced the liquidation of its independent operations, customers have begun to migrate to them.
At the same time, Bank Leumi opened the agreement with Wally and signed a cooperation agreement regarding Leumi's participations in the credit provided by Valley and the provision of banking services to the customers of both 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 activities in the US market and provide unique services to US customers.
Leumi says today that 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 and Private Banking Initiative. Alongside Leumi Group's business lines in the US, the many years of experience and quality manpower will also be significant growth engines for the merged bank.
Leumi CEO Hanan Friedman: "Upon completion of the transaction, 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."