Paz vs. Good Pharm in the struggle for Wolt Market: price may reach 300 million shekels

The battle for the acquisition of Wolt Market has entered its decisive stage. Last week, four groups submitted offers to purchase the retail chain operations of Wolt in Israel, with the highest offer standing at approximately 300 million shekels. The decision on the identity of the buyer is expected in the coming weeks, though industry experts estimate that price alone will not determine the winner.

Among the contenders are Good Pharm founders Adam Friedler and Ohad Sandler, Uri Max in partnership with the Apax fund, Paz Retail, and a private fund led by Thor Rosenberg. According to market estimates, the main battle is taking place between the Friedler-Sandler group and Paz, partly because they can serve as strategic owners from the perspective of Wolt Market.

The sale was forced upon Wolt following a decision by the Competition Commissioner, Michal Cohen, not to extend the exemption that allowed the company to simultaneously operate a delivery platform for retail chains and an independent retail operation through Wolt Market. This means that Wolt is required to sell the operation, having received a limited transition period to complete the deal.

However, unlike regular tenders, price is only one of the parameters here. Sources familiar with the process say that Wolt is primarily evaluating which partner can turn Wolt Market into a significant growth engine for the platform in the coming years. The industry points to several key criteria for evaluating bidders:

• The ability to expand operations, attract new customers, and increase sales.

• Willingness to invest in advertising and strengthening the brand on the Wolt platform.

• Development of new categories beyond food, primarily in the pharmacy sector using the Dark Stores model — a logistics center serving only online purchases.

• The likelihood of receiving approval from the Competition Authority.

Industry sources note that players without significant retail operations will find it harder to channel new activity into Wolt Market or make extensive long-term investments. The industry estimates that only two contenders — the Good Pharm group and Paz — currently possess the retail infrastructure and operational volumes capable of injecting significant activity into Wolt Market in the short term.

Advertising is a key consideration: Wolt views its platform as a commercial media arena, and therefore favors a buyer willing to invest in promoting the activity. One of the most sensitive issues is expected to be the approval of the Competition Authority. The industry believes that beyond the price, Wolt will examine the level of certainty that the deal can indeed receive the required approvals.

One question mark concerns the offer from Adam Friedler and Ohad Sandler. The two, whose Good Pharm is currently controlled by Rami Levy, claim that Levy will not be involved in the purchase of Wolt Market and that they intend to add partners to the deal. However, the Competition Authority may look beyond the formal bidder at the ownership structure and economic interests, viewing the parties as part of a "common table." If the Authority views them as part of the Levy group, which already has extensive online food operations, complications may arise. Furthermore, the pair might face a challenge regarding operating Wolt Market on Shabbat, as Levy's businesses do not operate on Shabbat.