Photo Credit: Miriam Alster / Flash 90
Bank Leumi branch in Israel.

Bank Leumi (TASE: LUMI) signed an agreement on Wednesday night to merge Bank Leumi USA with Valley National Bancorp (Nasdaq: VLY) at a valuation of $1.2 billion.

Leumi is expected to report a profit of 650-750 million NIS ($203 – 234 million) from this deal.

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Leumi says that the move will allow the bank to substantially expand its activity in the U.S. and to upgrade its commercial value proposition to its clients.

The merged bank will be the 29th largest bank traded on the U.S. stock exchange. Leumi will be the largest shareholder in the merged bank with above 14% equity.

Leumi CEO Hanan Friedman said, “This is a strategic move designed to wisely expand our business operations in the US. The merger will enable a significant and unprecedented presence for an Israeli bank in the U.S. market. This is positive news for its commercial and tech clients, who will now benefit from access to the capabilities of a top American bank and its commitment to Israeli clients.”

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TPS - The Tazpit News Agency provides news from Israel.