IDB Holding Corp. has ended talks to sell its majority stake in Clal Insurance to private equity firm Permira, Reuters reported Wednesday. The two parties failed to reach an agreement. IDB’s subsidiary IDB Development owns 55% of Clal Insurance, one of Israel’s top two insurers, Reuters wrote.
(Reuters) – IDB Holding Corp has ended talks to sell its majority stake in Clal Insurance to private equity firm Permira , the Israeli holding company said on Wednesday.
The two sides failed to reach an agreement “among other reasons taking into consideration the current state of financial markets in Israel and abroad,” IDB said in a statement.
A government-appointed committee earlier this week recommended regulations to increase competition in the Israeli economy by forcing conglomerates to sell either their financial or other “real” assets within four years.
The proposal, which still needs final approval, would require IDB to sell Clal Insurance in order to retain other holdings such as Cellcom , Israel’s largest mobile phone operator, and Supersol , Israel’s largest supermarket chain.
IDB said it was concerned that the conditions stipulated by Permira would not enable it to meet the timetable if the government’s proposals requiring conglomerates to sell assets are adopted.
IDB’s subsidiary IDB Development owns 55 percent of Clal Insurance, one of Israel’s top two insurers.
IDB had announced in January it was in talks to sell its stake in Clal Insurance to Permira.
(Reporting by Tova Cohen; Editing by Hans-Juergen Peters)