Competition Authority: Isracard sale to Harel harms competition

Isracard CEO Ran Oz and Harel Deputy Chairman Ben Hamburger credit Tami Bar Shay and PR
Isracard CEO Ran Oz and Harel Deputy Chairman Ben Hamburger credit Tami Bar Shay and PR

The Israel Competition Authority's opposition to the merger likely stems from the fact that Harel controls 37% of the health insurance market.

The Israel Competition Authority could be set to prevent Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) from buying Israel's largest credit card company Isracard (TASE: ISCD).

Harel and Isracard notified the Tel Aviv Stock Exchange (TASE) this morning that they had received a letter from the Israel Competition Authority stressing that in their assessment the merger would raise reasonable concerns on significant harm to competition in health insurance following the 'possible combination of the data held by both parties." Isracard's share price fell 13% this morning.

The Israel Competition Authority's opposition to the merger likely stems from the fact that Harel controls 37% of the health insurance market and is the dominant company in the sector. The regulator is concerned that Harel will increase its market share in health insurance by possessing data following the merger which will allow it to offer services in this field to new customers.

However, the Israel Competition Authority has not slammed the door on the planned merger and will allow Harel to refute claims, "before making a final decision regarding the merger request."

Harel dismissed the regulator's concerns and said, "The company's position is that there is no cause for concern and we will set out these arguments before the head of the authority in writing."

Harel has signed a binding agreement to buy a 100% stake in Isracard for NIS 3.3 billion.

Published by Globes, Israel business news - en.globes.co.il - on December 12, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Isracard CEO Ran Oz and Harel Deputy Chairman Ben Hamburger credit Tami Bar Shay and PR
Isracard CEO Ran Oz and Harel Deputy Chairman Ben Hamburger credit Tami Bar Shay and PR
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