The Israel Competition Authority has approved Clal Insurance Enterprises Holdings (TASE: CLIS) acquisition of credit card company Max. Earlier this week Clal Insurance received a one month extension to complete the deal.
The Competition Authority said that following completion of the deal Clal would not be able to hold more than a 7.5% stake in a bank or another credit card company. This restriction is purely theoretical because companies handling pension funds and savings are anyway not allowed to holds more than 7.5% of a bank. Clal Insurance has a 7.1% stake in Bank Hapoalim, a 7% stake in Israel Discount Bank and a 6% stake in Bank Leumi.
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Talks between Clal Insurance and Warburg Pincus for the acquisition of Max began a year ago. In April 2022 an acquisition agreement was signed at for Clal Insurance to buy Warburg Pincus’s 70% stake in Max at a company valuation of NIS 2.47 billion. Clal Insurance CEO Yoram Naveh has had to overcome fierce opposition to the deal from Alfred Akirov, the controlling shareholder in Alrov Properties and Lodgings (TASE: ALRP), who is the biggest shareholder in Clal Insurance, and who is waiting to hear if he can buy control of the company.
Published by Globes, Israel business news – en.globes.co.il – on February 9, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
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