Knesset c’ttee okays Discount sale of Cal to institutional body

The Knesset Economics Committee approved the bill, allowing it to pass to the second and third readings. Israel Discount Bank (level: Desk) to sell the ICC Cal credit card company directly to a corporate entity. The bill would change the current situation whereby a corporate entity wishing to acquire a credit card company can only do so from a third party as was the case with Clal Insurance Enterprises Holdings (TASE: CLIS)’s acquisition of MAX.

In 2017, the Strom Act required the separation of major banks and credit card companies, as is the case with Bank Leumi (level:room) And Bank Hapoalim (level: Poly) from their credit card companies. However, it was decided to study the separation of ICC Cal from Discount separately, mainly due to competition considerations. In January 2023, it was decided to separate Discount from the ICC it controls, when Finance Minister Bezalel Smotrich adopted the recommendations of the committee that examined the issue.

This article was published in Globes, Israeli Business News – en.globes.co.il – on July 11, 2024.

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