Israel's banking regulator said on Monday that Warburg Pincus, a private, New-York based equity firm, has been found to be "fit and proper" to buy Bank Leumi's credit card unit, paving the way for the deal to be completed.
Leumi, which owns 80% of Leumi Card, and property developer Azrieli Group, which holds 20%, announced in July they had agreed to sell the business to Warburg Pincus for 2.5 billion shekels ($670 million), subject to regulatory approval.
"We have already the finished review of Warburg Pincus and they are fit and proper to buy Leumi Card from the banking supervisor's standpoint," Supervisor of Banks Hedva Ber told a business conference.
"We are going to recommend to the Bank of Israel governor to give them a license. The divestment is going ahead."
Israeli regulators, in a bid to increase competition, have instructed the country's top two banks, Hapoalim and Leumi, to sell off their credit card companies by early 2020.
