Capital Market Authority Opposes Phoenix Acquisition of Wobi
The Capital Market Authority opposed Phoenix Holdings' 150 million NIS acquisition of insurance comparison site Wobi, citing objectivity concerns despite prior antitrust approval.
The Capital Market Authority has formally notified Phoenix Holdings of its opposition to the acquisition of the insurance comparison platform Wobi by Phoenix agencies, summoning the company for a hearing before issuing a final decision.
Regulatory Conflict and Market Concerns
The decision marks an unusual divergence between regulators. The Competition Authority had already approved the 150 million NIS deal approximately six months ago, in May. However, the Capital Market Authority, led by Amit Gal, maintained its initial negative stance. The acquisition involves buying 86% of Wobi from White Mountains, with Menora Mivtachim holding the remaining 14%.
Regulators are concerned that Wobi, which operates as an independent price comparison engine for auto and home insurance, will lose its objectivity under the ownership of Phoenix, one of Israel's largest insurance and financial groups. Phoenix agencies currently boast an estimated market value of 4.5 billion NIS and an annual profit of roughly 400 million NIS.
Phoenix Response and Next Steps
"We were surprised to receive the position of the Capital Market Authority considering not to approve the deal," Phoenix stated. "All arguments were examined in depth for many months by the Competition Authority, which approved the transaction."
Phoenix, led by CEO Eyal Ben-Simon, is currently reviewing the regulatory letter and considering its legal options, which may include petitioning the court against the decision.
