Discount Bank Renews Talks with Moti Ben-Moshe Following Collapsed CAL Deal
The NIS 4 billion deal to sell credit card company CAL has collapsed due to regulatory hurdles, pushing Discount Bank to reopen talks with tycoon Moti Ben-Moshe.
The massive deal to sell credit card company CAL at a valuation of approximately NIS 3.75 to 4 billion has officially collapsed. In a report to the Tel Aviv Stock Exchange, Israel Discount Bank confirmed the cancellation of the agreement with the Union-Harel group, following regulatory hurdles and a decision by the Competition Commissioner, Michal Cohen.
New Prospects for CAL's Acquisition
With the clock ticking for Discount Bank and First International Bank to comply with the legal requirement to divest from CAL according to statutory timelines, the roster of potential buyers is reopening. The void left by the failed deal may soon be filled by a familiar player who came within a hair's breadth of signing an agreement in September 2025.
According to a report published by TheMarker, Moti Ben-Moshe, chairman and controlling shareholder of Extra Holding and Alon Blue Square, is now considered one of the most prominent and relevant candidates to acquire full ownership of the company.
Representatives from Discount Bank have recently approached Ben-Moshe to gauge his willingness to return to the negotiating table, after his original offer—which was hundreds of millions of NIS higher than the Union-Harel bid—was previously rejected due to misjudgments regarding its regulatory approval prospects.
Strategic Challenges Ahead
Although Ben-Moshe enjoys high liquidity, broad access to credit, and a lack of principled opposition from the Bank of Israel, the path to a deal remains complex. Just as the Competition Commissioner conditioned Union's acquisition of CAL on the sale of its stake in Super-Pharm, Ben-Moshe fears he may be required to divest his controlling stake in "Dorf Alon". This holding includes hundreds of fueling stations, convenience stores, the AM:PM retail chain, and food brands, presenting him with a heavy strategic dilemma.
While Ben-Moshe keeps his cards close to his chest and calculates his chances with the Competition Authority, Discount Bank is not waiting. The bank is preparing to demand agreed compensation of approximately NIS 187 million for the cancellation of the deal, while simultaneously exploring parallel alternatives: ranging from promoting an initial public offering (IPO) of CAL on the Tel Aviv Stock Exchange, to petitioning the Ministry of Finance and the Bank of Israel for an extension to execute the sale.
