Competition Authority Blocks $1 Billion Cal Credit Deal

Israel's Competition Authority has blocked the proposed acquisition of Cal Credit, a major credit card company, approximately one year after the deal was announced. The authority and the parties involved failed to reach an agreement on the terms of the NIS 4 billion (approximately $1 billion) transaction. The authority had imposed strict conditions on the buyers, including the appointment of a supervisor and limitations on board members to prevent the transfer of information to Super-Pharm that could harm competition. George Horesh, one of the potential buyers, refused to accept these terms.

Union, Harel, and Bank Discount, the owners of Cal Credit, received the decision from the Competition Authority shortly before the article's publication. Bank Discount, led by CEO Avi Levin, had been awaiting the decision, which came on the final deadline for an extension granted to the buyers. The bank had hoped for approval to proceed with the acquisition.

Following the deal's collapse, Bank Discount will now focus on its own plan to issue Cal Credit, aiming for completion by May 2027, or potentially later if parliamentary approval is required. The failed acquisition marks a significant setback for the parties involved, particularly for Bank Discount, which was looking to divest its stake in the credit card company.