Investment House and Migdal Capital Markets have announced the merger of their brokerage operations. The merger will form one of Israel's leading brokerage operations.
The merger between the two TASE members is based on the synergies between the different operations of the two firms which will give them major advantage over the larger competitors both in the Institutional and retail segments of the market. The existing Migdal Institutional client operation will be combined into IBI's existing business while Migdal's vast retail operation will lend substantial leverage to IBI's current retail operation.
On completion of the merger, IBI Investment House will hold 80.1% of the combined company while Migdal Capital Markets will hold 19.9%.
The deal is subject to final approval by the restrictive trade practices controller and the Tel Aviv Stock Exchange.
IBI Investment House CEO Iddo Kook said, "The merger sits well with IBI's strategy to become a leader in each market we participate in. We found the ideal partner in Migdal with great synergies and many advantages which in short make this the perfect move."
Migdal Capital Markets CEO Yossi Ben Baruch said, "The merger between these two TASE members will allow the combined company to become a dominant entity on the exchange. This will allow clients to enjoy the many synergies and advantages each company brings with it"
IBI Brokerage and Investments CEO Julien Assous said, "IBI is a lead provider of brokerage services to Israeli and Global institutional clients while Migdal brokerage services is a lead provider of brokerage services to the Israeli retail market alongside its institutional client operation. I'm sure that together we will continue to lead the most professional brokerage operation in Israel improving and enlarging the width and breadth of our research department. The merger will allow us to further develop our operational and back office services, our retail customer relations and services, creating value to all our combined clients. We are certain the new structure will allow us to give our clients the most professional and efficient service in every aspect of the operation."
Published by Globes [online], Israel business news - www.globes-online.com - on July 19, 2015
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