Israel's Bank Leumi agreed to merge its unit Leumi USA into Valley National Bancorp in a deal valuing Leumi USA at about $1.2 billion and creating the 29th-largest publicly traded U.S. bank, Trend reports with reference to Reuters.
Leumi said it will hold just 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 ($203-$234 million) from the deal.
Valley National said the deal "further solidifies" its position as a top-tier commercial bank, 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 the form of Valley common stock, with the remainder in cash," Leumi said. "The deal is expected to be completed in the first or second quarter of 2022."