Discount Bank buys Dexia Israel

Dexia Photo: Shutterstock

The Israeli bank will pay NIS 670 million for Dexia Israel, which focuses on public and municipal finance.

Israel Discount Bank (TASE: DSCT) has signed an agreement to buy Dexia Israel (Public Finance) Ltd. (TASE:DXIL) for NIS 670 million. The acquisition comes six months after Franco-Belgian banking group Dexia S.A. sold its controlling core in the Israeli unit on the Tel Aviv Stock Exchange (TASE) at a company valuation of NIS 600 million, 12% lower than its value today.

The acquisition agreement was signed on Sunday and is subject to due diligence and approval by both the Bank of Israel and the Israel Antitrust Authority. The latter regulator, which recently nixed the Mizrahi Tefahot Bank (TASE:MZTF) - Union Bank of Israel (TASE: UNON) merger could prove a stumbling block. However, as Dexia does not work in retail banking but rather the relatively low-risk public and municipal financing sectors, Israel Discount Bank is confident that the acquisition will be approved.

Discount Bank plans merging Dexia into its Mercantile Discount Bank unit, which focuses on the Arab and Haredi sectors but also has public finance activities.

Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Dexia Photo: Shutterstock
Dexia Photo: Shutterstock
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