Israel's Bank Leumi has signed an agreement to merge Bank Leumi USA and Valley National Bank in a deal that reflects Bank Leumi USA valuation of approximately $1.2 billion, the banks announced Thursday.
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Leumi will hold just above 14% of the merged bank stocks after the merger and will be the largest non-controlling shareholder. Approximately 90% of proceeds for the transaction will be paid in the form of Valley common stock, with the remainder in cash. The deal is expected to be completed in the first or second quarter of 2022.
The merged bank will be the 29th-largest bank traded on the US stock exchange.
According to Bank Leumi CEO CEO Hanan Friedman, "The merger will provide Leumi significant and unprecedented presence and market access for an Israeli bank in the US. This is positive news for our commercial and technology customers, who will enjoy a wider range of product offerings and the capabilities of a top and prosperous US bank."
