Ayalon Insurance Explores Cal Acquisition Amid Altshuler Shaham Talks

Ayalon Insurance, a subsidiary of the Wesure-Ayalon group, is exploring the acquisition of credit card company Cal following the collapse of its planned sale to the Union-Harel group due to antitrust opposition.

The Ambitions of Wesure-Ayalon

According to a report by TheMarker, this surprising move comes at a particularly intriguing time, as Wesure is concurrently engaged in advanced negotiations to acquire controlling stakes in the Altshuler Shaham investment house. This dual strategy underscores the group's ambition to transform into a tripartite financial giant.

"We manage the company with a long-term vision, and our decisions are not dictated by stock price fluctuations. Our confidence in the company and commitment to its growth remain steadfast," stated Altshuler Shaham.

Regulatory and Market Challenges

The idea to acquire Cal emerged just a month after the multi-billion-shekel deal to sell it from Discount Bank and First International Bank to the Union group—controlled by George Horesh—and Harel Insurance fell through. Meanwhile, Discount Bank is simultaneously considering an IPO due to concerns over regulatory delays.

Concurrently, the market has expressed skepticism regarding the Altshuler Shaham deal, with Altshuler's stock plunging 22% since the announcement of the acquisition based on a valuation of 1.8 billion shekels. Regulators and financial analysts point to potential hurdles from the Capital Market Authority and financing costs.