Mega Credit Card Firm Sale Collapses Over Antitrust Concerns

A major deal to sell Israel's Cal credit card company to the Union Group and Harel Insurance is reportedly set to collapse this week due to irreconcilable differences between the Antitrust Authority and the purchasing consortium. The core dispute centers on the Antitrust Authority's demand that Eyal Golan, CEO of Union Group, be barred from serving as a director at Cal. The Authority cites Golan's full access to sensitive information at Super-Pharm, in which Union Group holds a one-third stake. Given that Cal manages the customer loyalty program for Super-Pharm's direct competitor, 'Be' (controlled by Shufersal), the Authority fears the leakage of confidential business data. Attempts at compromise, including Golan's offer to resign from the Super-Pharm board or the appointment of a supervising trustee, were rejected by the Authority. The Authority insisted that only an external director from Union Group, with no prior involvement in Super-Pharm, could fill the role. Union Group, led by George Horesh, refused this condition, arguing it would prevent them from exercising effective control and overseeing financial reports. Meanwhile, Avi Levi, CEO of Discount Bank, has urgently appealed to the Supervisor of Banks and the Ministry of Finance to cancel the bank's legal obligation to sell its 72% stake in Cal. Levi contends that given the timeline and expected opposition from the International Bank (holding 28%), selling the company by the legal deadline of 2027 will be impossible. However, the likelihood of legislative changes at this time is considered minimal. Without Antitrust Authority approval and a willingness for further compromise, Union Group and Discount Bank are expected to withdraw their application in the coming days. This would effectively end a significant deal intended to reshape Israel's consumer credit landscape and return Discount Bank to its starting point.