Israel's Bank Leumi to merge unit to create 29th largest U.S. bank

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Israel's Bank Leumi to merge unit to create 29th largest U.S. bank

JERUSALEM - Sept 23, Reuters - Israel's Bank Leumi said on Thursday that it agreed to merge its unit Leumi USA in a deal which values Leumi USA by about $1.2 billion and creating the 29th largest U.S. bank.

Leumi said it will hold over 14% of the merged bank stocks, making it the largest non controlling shareholder.

It expects to report a profit of 650 - 750 million shekels $1003- $234 million from the deal.

Valley National said the deal further solidifies its position as a top-tier business bank, by expanding its technology and venture capital banking business. Leumi expects to enhance its exposure to the U.S. market.

Approximately 90% of proceeds for the transaction will be paid in cash with the remainder in valley common stock, Leumi said. The deal is expected to be completed in the first or second quarter of 2022.