Credit Card Firm Calcal Deal Collapses Over Super-Pharm Holdings

A multi-billion shekel deal to sell the Israeli credit card company Cal (Calcal) has collapsed after the Antitrust Authority and the involved parties failed to agree on conditions for its completion. The Antitrust Authority demanded that the Union Group, controlled by George Horesh, divest its holdings in the Super-Pharm drugstore chain as a prerequisite for approving the acquisition of Calcal. Horesh refused this demand, leading to the impasse.

The deal, initially agreed upon in September 2025, was set to transfer control of Calcal from Discount Bank and International Bank to the Union Group and Harel Insurance Company. The transaction was valued at approximately 4 billion shekels, with Union intended to hold 80% and Harel 20%.

The core of the dispute revolved around the relationship between Calcal and Super-Pharm. Union Group holds a 35% stake in Super-Pharm, while Calcal is involved in the Shufersal (a retail chain) financial services and credit card operations. The Antitrust Authority feared that after the acquisition, Union Group would gain access to sensitive customer data held by Calcal, potentially benefiting Super-Pharm, which competes with Shufersal's Be chain.

Previously, the Authority had imposed restrictions to prevent information flow between Calcal and Super-Pharm, including requiring an independent supervisor and limiting the appointment of Union Group representatives to Calcal's board. The potential appointment of Eyal Golan, CEO of Union Group and a Super-Pharm director, to Calcal's board was a significant point of contention.

Despite months of negotiations and some flexibility from the Authority on other demands, an agreement could not be reached, even after a meeting between the head of the Antitrust Authority and key figures from Union and Harel. Consequently, Discount Bank is now expected to pursue an alternative plan, likely an initial public offering (IPO) of Calcal on the stock exchange by May 2027, to comply with regulatory requirements to divest its stake.