Israel's Competition Authority Faces Year-Long Delays in Approving Complex Mergers
Each year, Israel's Competition Authority receives hundreds of merger requests, most of which are approved quickly, often within a month for simple cases. However, complex mergers that raise competitive concerns can take several months to up to a year for thorough examination. This extended review period is due to the detailed investigation required, including gathering extensive data, holding hearings, and assessing potential harm to market competition.
A notable ongoing case involves the merger between Union, controlled by George Khoury, and Harel Investments acquiring Cal, a credit card company owned mostly by Discount Bank. The merger, decided in September 2025, faces significant competition concerns, particularly regarding data sharing between Cal and Super-Pharm, which Union partly owns, potentially disadvantaging competitors. Similar concerns about data usage also led the authority to block Harel's earlier attempt to acquire Isracard after a 10-month review.
Other mergers, such as Pango's planned acquisition of Get taxi services and Melisron's purchase of Golden Mall, were canceled after lengthy reviews due to fears of reduced competition in their respective markets. Conversely, some complex mergers, like the acquisition of Panda furniture by mattress company Holandia, were approved after about five months.
The Competition Authority categorizes merger requests into three groups based on complexity, with about 20% considered complex and requiring in-depth scrutiny. The law allows the authority to extend review periods up to 150 days, with further extensions possible through court approval or parties' consent. The authority emphasizes the importance of preventing irreversible mergers that could harm competition.
Legal experts warn that prolonged uncertainty during these reviews harms businesses by freezing operations, damaging relationships with employees and clients, and increasing deal risks. They argue that while protecting competition is crucial, excessively long investigations can stifle growth, innovation, and investment in the Israeli economy. The Competition Authority acknowledges these challenges but maintains that thorough reviews are necessary to avoid irreversible damage to market competition and that most parties can anticipate the complexity of their mergers before filing.
In 2025, the average review time was 48 days, with simple mergers averaging 28 days. The authority continues efforts to streamline approvals for non-problematic cases while dedicating more time to complex mergers that pose real competitive risks.
