Sources inform “Globes” that Antitrust Authority director general Dror Strum may not approve of Leumi Card's acquisition of the controlling interest in Gama Management and Clearing.
This acquisition is different from Visa CAL earlier acquisition of the controlling interest in credit card clearing company Yatzil Finance.
Strum believes the difference is that Leumi Card is wholly-owned by Bank Leumi (TASE:LUMI), whereas Visa CAL has several banking and non-financial owners.
Visa CAL competes against the banks, but Leumi Card is a wholly-owned subsidiary of a bank. Therefore, its acquisition of Gama means that a bank is absorbing a credit clearing company.
Strum said in response that he considered the two deals as fundamentally different when they were brought to his attention a few months ago. He emphasized that he placed great importance on the credit clearing market as a secondary market, and he was concerned that the major banks would acquire the credit clearing companies. However, he added that no one had filed a request to approve the deal, and at this stage he could not say if he would approve it, or under what conditions.
Sources close to the deal said in response that they thought there was no reason for Strum not to approve the deal.
Published by Globes [online] - www.globes.co.il - on October 15, 2003