CAL Credit Card Sale Nears Collapse Amid Competition Authority Objections
The deal to sell credit card company CAL is on the verge of collapse after the Israel Competition Authority and the buyers failed to reach a regulatory agreement regarding potential conflicts of interest involving Super-Pharm.
A year after its signing, the deal to sell credit card company CAL is reportedly on the verge of collapse. According to Calcalist, the Israel Competition Authority and the buyers' representatives have failed to reach an agreed framework for regulatory approval. At the center of the dispute is Eyal Golan, CEO of Union Group, which is acquiring 80% of CAL alongside Harel Insurance (20%). Competition Commissioner Michal Halperin's successor, Michal Cohen, insists that Golan cannot serve as a director at CAL due to his extensive exposure to Super-Pharm.
Union Group holds a one-third stake in Super-Pharm, Israel's largest pharmacy chain, where Golan serves as a director. Cohen argues that appointing Golan to CAL's board could harm competition in the retail pharmacy sector and beyond. CAL is a partner in issuing and operating cards for the Super-Pharm Finance club, raising concerns that sensitive information could flow from CAL to Super-Pharm through Union and Golan. Although Union proposed that Golan resign from his board seat at Super-Pharm, Cohen rejected the offer, citing his deep historical knowledge of the retailer.
Discount Bank's Desperate Appeal
In a last-ditch effort, Israel Discount Bank CEO Avi Levi sent a letter to the Supervisor of Banks, the director-general of the Ministry of Finance, and the director of the Budget Department, asking to cancel the mandate requiring the bank to sell its 72% stake in CAL. Levi argued that the current transaction with Union is the only viable option, and the bank cannot find another buyer before the statutory May 2027 deadline. Discount also noted that minority shareholder First International Bank of Israel (28%) holds a veto right over any IPO.
"How can Union's CEO sign CAL's financial reports without being exposed to the company's data? Who would take the risk of transferring information when it is strictly prohibited?" a source within the buying group asked.
With regulatory deadlock looming, the deal is expected to be officially scrapped this week, forcing Discount Bank to weigh alternative exit strategies, including distributing CAL shares as a dividend in kind to its shareholders.
