Discount and Mercantile Boards Approve Bank Merger

Israel Discount Bank and its wholly owned subsidiary Mercantile signed a merger agreement on Tuesday after approval by both boards. Mercantile’s brand and areas of expertise are expected to remain after the merger. Discount says combining operations will reduce overlap and costs while broadening services for Mercantile customers. Under the agreement, Mercantile’s assets, rights and liabilities would transfer to Discount without payment, and Mercantile would cease to exist as a separate legal entity without liquidation. Completion remains conditional on a Tax Authority ruling, Bank of Israel approval and other required permissions, within 12 months unless the parties agree to extend that period.