Cal Credit Card Company Sale Collapses, CEO Seeks Extension
Translated & summarized from Ice by baba
The sale of Israeli credit card company Cal for up to 4 billion shekels has collapsed after the Competition Authority imposed conditions on the buyers, Union Group and Harel Insurance. Cal's CEO, Yafit Grani, met with the Ministry of Finance to request an extension for the sale, which is mandated by law for its owner, Discount Bank. The previous deal fell apart due to concerns over competition related to the buyers' ownership of Super-Pharm, and they face a 187 million shekel penalty. Discount Bank is now exploring an IPO or seeking a state extension.
The story in 6 lines · by baba
- Cal's CEO requested an extension after the company's 4 billion shekel sale collapsed due to regulatory demands.
- The Competition Authority required buyers Union Group to sell Super-Pharm holdings, leading to deal termination.
- Buyers Union Group and Harel Insurance face a 187 million shekel penalty for the failed sale.
- Discount Bank must divest Cal by April 2027 as part of banking competition reforms.
- Cal reported strong profits, but the sale is mandated by regulatory separation of banks and credit card firms.
- Discount Bank may pursue an IPO or seek a state extension if a buyer isn't found.
The planned sale of the Israeli credit card company Cal, valued at up to 4 billion shekels, has fallen through, prompting its CEO, Yafit Grani, to request an extension from the Ministry of Finance. Grani met with Ministry Director General Yisrael Mellach on Wednesday to discuss delaying the deadline for the company's sale.
Discount Bank, which owns 72% of Cal, is mandated by law to divest its stake by April 2027. The bank was forced to restart the sale process earlier this month after the previous deal expired. The original agreement, signed in September 2025, was for Union Group, owned by businessman George Horesh, and Harel Insurance to purchase Cal for 3.75 billion shekels, potentially rising to 4 billion. However, this deal collapsed after about a year of waiting for approvals.
The Competition Authority blocked the sale, demanding that Union Group sell its stake in the Super-Pharm chain. This was due to Cal issuing credit cards for the Shufersal club, which is owned by the rival pharmacy chain Be, owned by Super-Pharm. The authority feared that joint ownership would grant access to sensitive business information and harm competition. The buyers refused these conditions, leading to the deal's termination on November 1.
As a result of the failed deal, Union and Harel are obligated to pay the selling banks a total of 187 million shekels in compensation: approximately 150 million shekels from Union and 37 million shekels from Harel. This penalty was stipulated in the agreement for cases where the deal fails due to a lack of necessary approvals.
Despite the sale's collapse, Grani had recently expressed optimism, citing significant interest from potential buyers and highlighting Cal's strong financial performance. The company reported a net profit of 99 million shekels in the third quarter and 281 million shekels for the first nine months of the year. The sale is mandated by government reforms aimed at increasing competition in the banking sector by separating banks from credit card companies.
If a buyer is not found in time, Discount Bank is considering an initial public offering (IPO) for Cal or attempting to secure an extension from the state. However, political delays in forming a new government could complicate these efforts. Currently, no new deal is on the table, and time is running out.
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