Credit Card Firm Calá Deal Collapses Amid Antitrust Concerns
A year-long deal to sell Israel's Calá credit card company is on the verge of collapse this week, as the Antitrust Authority and the prospective buyers have failed to reach an agreement. The core of the dispute centers on Eyal Golan, CEO of Union Group, which is acquiring Calá along with Harel Insurance.
The Antitrust Commissioner, Michal Cohen, insists that Golan cannot serve as a director at Calá due to his significant exposure to Super-Pharm, Israel's largest pharmacy chain. Cohen argues that Golan's potential role as chairman or director at Calá could harm competition in the pharmacy sector and beyond. This concern stems from Union Group's one-third ownership of Super-Pharm, where Golan also sits on the board. Since Calá is involved in operating and issuing cards for the Shufersal Finances club, a competitor to Super-Pharm, Cohen fears that information held by Calá could be transferred to Super-Pharm through Union Group and Golan.
Union Group proposed Golan resign from his Super-Pharm directorship, but this was rejected by Cohen, as Golan remains CEO of Union Group and possesses extensive knowledge of Super-Pharm's operations. Cohen did agree to a different Union Group director not involved with Super-Pharm, but Union Group finds this condition problematic, stating it prevents them from exercising control over Calá. Union Group has indicated it is unwilling to proceed with the deal under these circumstances.
Calá's current owner, Discount Bank, is under regulatory pressure to sell its 72% stake by May 2027, a deadline set by banking reforms passed in early 2023. The bank's CEO, Avi Levi, has appealed to regulators to cancel the sale order, arguing that the current deal with Union Group is the only viable option and that finding another buyer within the remaining timeframe will be impossible. Discount Bank also faces opposition from its partner in Calá, International Bank (28%), which holds veto power over any new card issuance and has signaled it will oppose the Union Group deal.
Despite the impasse, the Antitrust Authority maintains its consistent position, aiming to protect consumer competition. Professional sources in the field suggest that the Authority is allowing Union Group to appoint a director not involved with Super-Pharm, but Union Group's insistence on Golan is seen as problematic given the company's significant holdings in various sectors, including automotive, fashion, real estate, and industry. The situation is further complicated by the ongoing election period, which restricts the Knesset committees needed to alter or extend the sale deadline.
