Bank Hapoalim (TASE: POLI; LSE:80OA) today officially cancelled its acquisition of Russian bank SDM. The bank cited "global economic developments, particularly in Russia, not obtaining an acquisition permit from the Bank of Israel, and not meeting all dependent conditions" as the reasons for cancelling the deal.
Bank Hapoalim's board is due to discuss the bank's work plan, including its international strategy, within a few days.
Officials within Bank Hapoalim had been calling to cancel the acquisition of SDM for several months, due to the changing macroeconomic conditions, and the Russian economic freefall and increased geopolitical risk. The Bank of Israel also opposed the deal. In October, the Bank of Israel denied Bank Hapoalim a permit to acquire a bank in Ukraine.
In July, Bank Hapoalim announced that it would acquire 78% of SDM for $111 million, giving a company value of $142 million for the bank.
Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2009
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