Israel’s Bank Leumi and Azrieli Group agreed to sell their credit card unit to Warburg Pincus for a NIS 2.5 billion deal as part of the government’s push to increase competition in the financial sector.
Israel’s Harel Insurance Investments and Financial Services said it was lending Warburg Pincus NIS 850 million for the purchase. The NIS 2.5 billion will be paid in three installments, with the deal expected to be completed within four months.
Leumi’s President & CEO, Rakefet Russak-Aminoach says: “Warburg Pincus’s experience will assist Leumi Card in realizing its business strategy and ensure innovative, high-quality and professional service to its customers. This is a great vote of confidence in the Israeli economy by one of the world’s largest private equity funds, and is a source of great pride to us all.”