After Losing Fly Card, Is Max at Risk of Losing Shufersal Club Too?

Three months after losing El Al’s Fly Card club to Isracard, credit card company Cal may also be forced to give up Shufersal’s customer club. The issue stems from a demand by the Competition Authority, which is weighing whether Cal must sever its tie to Shufersal as a condition for approving Cal’s sale.

According to people familiar with the matter, the regulator has conveyed that position in informal talks, but it has already created tension around the deal. Shufersal has become especially important to Cal since the loss of Fly Card. The club has about 2.2 million members and roughly 590,000 active credit cards, making it one of Israel’s largest consumer clubs.

The Competition Authority’s concern is the concentration of consumer power in Shufersal’s hands. The group not only owns Israel’s biggest supermarket chain, but also the Be pharmacy chain and a broad trove of data on millions of customers’ shopping habits. Regulators are examining the combination of a large retail operation and a major credit club, and believe Cal should separate from Shufersal in the transaction.

Finding a replacement would not be simple. Super-Pharm’s customer club already operates under a long-term agreement with Isracard, limiting Cal’s immediate alternatives if it has to surrender one of its key assets. Industry sources say losing both Fly Card and Shufersal could leave Cal without its two main clubs and may affect the valuation used for the sale. Buyers reportedly view the potential double loss as a cumulative hit to the company’s core assets, and if the regulator insists, they may seek a review of the deal’s terms. The buyers oppose the demand and say they will petition the Competition Tribunal if necessary. The Competition Authority said only that the deal is under review, while Cal declined to comment.