Delek Motors Explores Acquiring Control of Cal Credit Card Company
Delek Motors, controlled by Gil Agmon, is exploring a potential acquisition of Israel's Cal credit card company, valued at up to NIS 3.5 billion. This comes as Cal's current owner, Discount Bank, must divest its controlling stake by May 2027 due to competition reforms. A previous deal to sell Cal to Union Group and Harel Insurance was jeopardized by regulatory concerns, prompting renewed efforts to find a buyer. Other potential bidders include Centrige Group and Jerusalem Bank.
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- Delek Motors, controlled by Gil Agmon, is reviewing a potential acquisition of Cal credit card company.
- The potential deal values Cal at up to NIS 3.5 billion, with Agmon considering a 50-55% stake.
- Discount Bank must reduce its 72% stake in Cal to 40% by May 2027 due to competition reforms.
- A prior deal to sell Cal to Union Group and Harel Insurance is in jeopardy over regulatory demands.
- Centrige Group and Jerusalem Bank have also expressed interest in acquiring Cal.
- Cal is the most profitable of Israel's three major credit card companies, with annual profits around NIS 350 million.
Delek Motors, controlled by Gil Agmon, has begun a preliminary review of a potential acquisition of shares in the Israeli credit card company Cal, according to a filing with the Tel Aviv Stock Exchange on Tuesday. This move follows earlier reports of discussions between Agmon and Discount Bank, the current controlling shareholder of Cal. Delek Motors emphasized that the review has not yet reached the board level and there is no certainty it will lead to a deal, with no terms or structure yet defined.
Agmon is reportedly aiming for a valuation of NIS 3 billion to NIS 3.5 billion for Cal and is considering purchasing 50% to 55% of its shares, possibly with a financial partner. Discount Bank, which holds 72% of Cal, is required by competition reforms to reduce its stake to a maximum of 40% by May 2027. Cal is the last of the three major Israeli credit card companies to be separated from its parent bank.
Previously, in September 2025, a deal was struck to sell Cal to George Horesh's Union Group and The Harel Insurance Company for approximately NIS 3.7 billion plus contingent payments. However, the Israel Competition Authority conditioned its approval on Union Group selling its 35% stake in Super-Pharm, citing concerns over sensitive business information, as Cal issues credit cards for Shufersal, which operates the competing pharmacy chain BE. The buyers have stated they will cancel the agreement on November 1 if the Authority's stance doesn't change, though they are currently attempting to revive the deal with investment firm Gallatin as a key partner.
Other interested parties include Centrige Group, which previously offered around NIS 3 billion, and Jerusalem Bank. If the deal with Horesh falls through, Discount Bank may initiate a new tender process and is also preparing for a potential IPO of Cal as a last resort. The bank has requested extensions from the Ministry of Finance and the Bank of Israel for the sale deadline.
Cal, led by CEO Yafit Griani, was founded in 1979 and offers credit card issuance, clearing, and consumer and business credit. It is the most profitable of the three major credit card companies, with annual profits of about NIS 350 million, despite losing its "Flycard" loyalty program to Isracard this year. Agmon, who has controlled Delek Motors since 2010, is looking to diversify from Delek Motors' automotive business, which has seen declining market share due to competition from Chinese brands and the shift to electric vehicles.
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