Cal's 4 Billion Shekels Acquisition Deal Collapses Over Regulatory Demands

The 4 billion shekels acquisition deal of Cal has collapsed after nearly a year of negotiations. The Israel Competition Authority and the parties failed to reach an agreement on the transaction's terms due to stringent regulatory demands.

While the Authority technically approved the deal, it conditioned the approval on the buyers, George Horesh and Union Group, selling their stakes in Super-Pharm. Horesh firmly rejected this condition. Furthermore, the Authority demanded the appointment of an external inspector and restrictions on directors to prevent competitive information sharing with Super-Pharm. Union, Harel Insurance, and credit card company owner Discount Bank were notified by the Competition Authority shortly before the deadline.

Discount Bank, led by Avi Levin, waited until the final deadline requested by the buyers for a decision. Following the collapse, the bank will now advance an initial public offering (IPO) for Cal, aiming to complete it by May 2027, or at a later date subject to Knesset approval.