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A spokeswoman said it was not satisfied with the company's involvement in settlement activity in the West Bank - which contravenes international law.
Israel's ambassador to London said the decision was "appeasement to those who slander Israel".
All Jewish settlements in the Palestinian territory are regarded as illegal under international law, although Israel disputes this.
More than 400,000 Jewish settlers live in the West Bank and East Jerusalem, areas which were captured by Israeli in the 1967 war.