Billionaire-Backed Bank Seeks to Move Away From Israel’s Housing Market
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Mizrahi is weighing $400 million bid for Union Bank of Israel
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Israeli home prices are slowing after government intervened
Mizrahi Tefahot Bank Ltd.’s planned bid for a smaller rival signals a shift away from the Israeli housing market that transformed it into the country’s most profitable lender.
Mizrahi, Israel’s third-largest bank by assets, is considering a $400 million offer for Union Bank of Israel Ltd., according to a stock market filing on Monday. The banks are in talks for a tie-up in which Mizrahi would purchase all traded shares of Union Bank for as much as 60 percent of its equity, according to the statement.
“The bank has been looking for a long time to diversify away from the housing market and a deal like this would do it in one swoop,” said Meir Slater, head of research at Bank of Jerusalem Ltd., in Tel Aviv. “This would speed up the process that would have taken years to accomplish.”…
Billionaire-Backed Bank Seeks to Move Away From Israel’s Housing Market
