Israel’s Competition Authority is nearing a final decision on whether to approve the sale of credit card company Cal from Bank Discount and Bank Hapoalim to George Horesh’s Union group and Harel Insurance. The deal, signed in September 2025, is valued at 3.9 billion shekels including deferred payments. If approved, Horesh would hold 80% and Harel 20%. A ruling is expected within about two weeks.
The main obstacle is Cal’s partnership with Shufersal’s customer club. Regulators now appear likely to condition approval on Cal severing that relationship. The authority believes the club gives Cal broad access to customer data, including spending habits, categories, purchase frequency, and out-of-store purchases, creating a sensitive competitive advantage, especially because Horesh owns 33% of Super-Pharm and Shufersal owns the competing BE chain.
Horesh and Cal argue that data transfer is forbidden by law and cannot be used. They also say forcing Cal out of the Shufersal club would merely push the club to another card issuer, as happened with El Al’s Fly Card, which moved to Isracard. In recent meetings, the buyers came away thinking the regulator might retreat, but the authority has not done so. If the condition is imposed, the buyers are considering petitioning the Competition Tribunal.
The stakes rose after Cal lost Fly Card about three months ago, making Shufersal its main remaining major retail club. Shufersal has 2.2 million members and 590,000 cards as of the end of the first quarter, and losing it would sharply weaken Cal’s growth engine and could force a price adjustment in the deal. The sale also includes a potential benefit for Cal, because once Hapoalim exits, Cal could seek a small-bank license, which the Competition Authority supports. Bank of Israel also backs the transaction. Cal, Discount, and the Competition Authority declined to comment beyond saying the request is under review.
