The government is favorably considering approving postponing the need for Israel Discount Bank to sell its stake in Cal-Israel Credit Cards, sources have told "Globes." This follows the final collapse of the planned acquisition this morning, after Union Group owned by George Horesh, and the Harel insurance company withdrew from the deal due to the conditions imposed by the Israel Competition Authority.
Horesh and Harel prefer to pay NIS 187 million to cancel the deal rather than accede to the Israel Competition Authority’s demand that Union Group sell the Super-Pharm chain. Israel Discount Bank will receive NIS 135 million in compensation for its 72% stake in Cal for the cancellation and First International Bank will receive NIS 52 million for its 28% stake.
The postponement requires dual approval from the Supervisor of Banks at the Bank of Israel and the Ministry of Finance. Discount Bank had already indicated last week its intention to request a delay in the sale of the credit card company, currently required to take place by May 2027, although it has not yet submitted a formal request.
However, sources familiar with the details told "Globes" that holding Discount Bank to the original deadline would be unreasonable, and that granting an extension would be favorably considered, subject to certain conditions and reviews. Factors to be examined include the time elapsed between the opening of the sales process and the identification of initial buyers. Another significant argument in Discount Bank's favor is the fact that the deal was delayed for nearly a year due to the Competition Authority's review process.
Market sources believe that the hurdles raised by the Competition Authority - most notably the demand that the Union Group divest its holdings in Super-Pharm - were effectively intended to push for a Cal IPO, and that any deal submitted to the Authority would face similar difficulties. In recent years, public criticism has arisen on the transfer of ownership of credit card companies from banks to insurance companies, which shifted the locus of control over them, rather than creating an alternative to the market's dominant players.
Published by Globes, Israel business news - en.globes.co.il - on September 23, 2026.
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