Israel’s financial, regulatory and political systems have been in an uproar this week, when news emerged on Tuesday of an enormous deal being negotiated between the country’s largest insurance company, The Phoenix Group, and Abu Dhabi government-backed ADQ Developmental Holding Company.

Reportedly, a memorandum of understanding was signed, by which 25% of Phoenix to be transferred from Centerbridge Partners and Gallatin Point Capital, two American capital funds that control the insurance company, and Abu Dhabi. This means that the Emirati fund will become the biggest stakeholder of Phoenix, and effectively control the insurance company. The deal is estimated at approximately $680 million.

The signing came as a surprise to the Capital Market, Insurance and Savings Authority, which serves as the country’s regulator for deals of this kind. It will be the one to decide whether the purchase would get the go-ahead. An approval from the Israel Competition Authority would also be required.

In the past, Israel rejected requests from Chinese companies to acquire control of Phoenix. The current decision will only be finalized after a thorough investigation of the economic and security ramifications of the deal.