Israeli conglomerate Delek Group has completed the divestment of its 32.5% stake in the insurance company Phoenix Holdings for NIS1.57bn ($446m).

The minority stake was acquired by private equity firms Centerbridge Partners and Gallatin Point Capital.

The private equity firms paid NIS1.335bn of the total consideration in cash. The transaction value may change, subject to the future returns of the purchasing funds.

Delek also secured a five-year NIS235m loan to support the acquisition, reported Reuters.

The companies signed the binding agreement for the deal in May this year.

Delek Group divested its stake in Phoenix Holdings to comply with Israel’s Market Concentration Law.

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Earlier, Delek tried to sell Phoenix Holdings multiple times, however, the deals fell through due to regulatory red-lights.

It includes cancelling the deal to sell controlling stake in Phoenix Holdings to Sirius International Insurance Group in July last year.

Phoenix Holdings provides car insurance, home insurance, travel insurance, life insurance and health insurance, among others. The company also has an Investments segment.

One of the acquirer, UK-based Centerbridge Partners was founded in 2005. Currently it manages around $27bn of investments in the insurance, financial services, and real estate sectors.

The other private equity firms Gallatin Point Capital is based in the US. It primarily focuses on financial services and assets and invests in areas involving regulatory and technological changes.