The huge deal to sell control of Phoenix Insurance Company to the Abu Dhabi government's ADQ Fund has been canceled, Phoenix told the stock exchange on Sunday. The memorandum of understanding signed by the company in December last year did not mature into a deal due to "regulatory restrictions," and at this stage, Phoenix said, "an agreement is being formulated for a new deal with the consortium."
In December, it was reported that private equity firms Stanbridge Partners and Gallatin Point Capital, which hold 33.44% of the Phoenix Group, are in advanced negotiations with UAE funds, led by ADQ, to enter the controlling core of the Phoenix Group.
Demonstrators in front of the Histadrut building in Tel Aviv chanting "Strike Now!" | Gil Levine
The significant move made possible by the Abraham Accords, the first of its kind in the Israeli financial market and among the largest made with the UAE, encountered many regulatory difficulties. The Emirati funds were supposed to acquire 25%-30% of the Phoenix Group.
Phoenix controlling shareholder Yitzhak Tshuva, photo: Yehoshua Yosef
Founded in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of companies. Its investments span a variety of areas that characterize the UAE's economy, including energy and infrastructure, food and agriculture, finance, health and life sciences, logistics and transportation, and more. As a strategic partner of the Government of Abu Dhabi, ADQ is committed to accelerating Abu Dhabi's transformation into a knowledge-based competitive economy.
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