Cal CEO Asks Finance Ministry for Deadline Extension to Sell Credit Card Firm
Cal CEO Yafit Griani met with Finance Director-General Israel Malachi to request an extension for selling Israel Discount Bank's stake, as regulatory hurdles and the loss of the Fly Card threaten the 4 billion shekel deal.
Cal CEO Yafit Griani met with Ministry of Finance Director-General Israel Malachi to request a deadline extension for the sale of Israel Discount Bank's holdings in the credit card company. The meeting took place at the ministry, where Griani asked for an extraordinary extension to postpone the company's mandatory divestment.
Earlier this month, Israel Discount Bank, which holds a 72% stake in Cal, restarted the sale process after the original agreement to sell Cal to the Union-Harel group for up to 4 billion shekels expired. The request follows growing doubts that the acquisition can be completed before the statutory deadline set for next April. Discount Bank spent a full year attempting to secure approval from the Israel Competition Authority, but ultimately failed to finalize the regulatory clearance.
The original deal with Union-Harel—a partnership between George Horesh's Union Group, the importer of Toyota vehicles in Israel and holder of a 35% stake in Super-Pharm, and insurance giant Harel Insurance & Finance—collapsed weeks before expiration due to strict conditions imposed by the antitrust regulator. The authority demanded that Union divest its stake in Super-Pharm because Cal issues credit cards for Shufersal, which operates the competing Be pharmacy chain.
Market estimates suggest that Cal's valuation may shrink following several adverse economic developments, most notably the loss of the Fly Card customer loyalty club to rival Isracard.
Regulators remain sharply divided over the extension request submitted to the Ministry of Finance. Proponents argue that the recent timing of the Competition Authority's ruling left an unreasonably tight window to complete the sale on schedule. Opponents, however, emphasize that the statutory divestment timeline stems from the Strum Committee reforms designed to structurally separate credit card companies from banks, noting that Bank Hapoalim successfully floated Isracard on the Tel Aviv Stock Exchange in late 2019 and Leumi sold Max to Clal Insurance.
In recent years, public criticism has targeted the transfer of credit card company ownership from banks to insurance conglomerates, arguing that it merely shifts market power rather than creating genuine competition. The situation is further complicated by political instability; with the prospect of potential elections and no stable government coalition, legislative amendments to grant a deadline extension face severe hurdles. Cal declined to comment on the matter.
