Centerbridge and Gallatin face off in renewed race for CAL
The two investment firms, which previously partnered in The Phoenix, are now competing for the credit card company. Centerbridge is preparing a new bid, while Gallatin is teaming up with George Horesh and Harel in a structure designed to address competition concerns.
Centerbridge Partners, the investment firm that previously offered NIS 3 billion to acquire credit card company CAL, is preparing to submit a new bid, Calcalist has learned. The firm is targeting a valuation of NIS 3 billion to NIS 3.2 billion for the company.
The move is being led by Centerbridge executive Ben Langworthy. If the proposal is submitted this week, the negotiations with Bank Discount will be led by the fund’s representative in Israel, Eli Yones, the former CEO of Mizrahi Tefahot Bank. Yones also led Centerbridge’s acquisition of The Phoenix from Yitzhak Tshuva, an investment the fund exited more than a year ago for a 2.5-fold return. Centerbridge may bring an Israeli partner into the deal if negotiations progress. In the previous round, the fund invited Melisron, controlled by Liora Ofer, to join its bid.
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From right: Ben Langworthy, a principal at Centerbridge Partners, Avi Levi, CEO of Discount Bank
(Rami Zaranger, screenshot from LinkedIn)
Centerbridge will be competing against Gallatin, its co-investor in The Phoenix. As Calcalist previously reported, Gallatin is joining forces with businessman George Horesh, his company Union, and Harel. Horesh and Harel were unable to acquire CAL on their own because the Competition Authority conditioned its approval on Horesh selling his 35% stake in the Super-Pharm chain. Super-Pharm competes with Shufersal’s BE pharmacy chain, while Shufersal issues its credit cards through CAL, which also manages the retailer’s customer loyalty program.
Horesh remains determined to acquire CAL, even without a controlling stake, and is prepared to settle for a holding of 30% to 35%. Under the proposed structure, Harel would hold 20%, while Gallatin would acquire 40% to 45%. The Competition Authority will review the arrangement and could approve it, given that its discussions with Horesh and Harel indicated that the main concern was Horesh’s control of Super-Pharm. Gallatin also holds a 15% stake in Discount Bank’s New York operations, making it a partner of the bank.
Both Gallatin and Centerbridge were among the investment funds that initially expressed interest in acquiring CAL two years ago, when the process to sell Discount Bank’s 72% stake in the company began. In May 2025, Centerbridge, Moti Ben-Moshe and the Horesh-Harel group reached the binding-offer stage. Centerbridge offered approximately NIS 3 billion but was subsequently dropped from the process after the bank decided to move forward with Ben-Moshe’s Extra group and the Horesh-Harel consortium.
Negotiations with Horesh and Harel progressed well, and they secured the deal at a price of NIS 3.75 billion to NIS 4 billion, including future payments contingent on meeting specific milestones. Ben-Moshe offered NIS 4.18 billion, but the bank’s management, advised throughout the process by J.P. Morgan, chose not to accept his bid.
Centerbridge’s earlier proposal also included CAL’s Fly Card loyalty program, which the company operated before it moved to Isracard this year. Businessman Zvi Barak, a co-owner of Wishore and Ayalon, has also expressed interest in CAL and could potentially submit a joint bid. Wishore has signed an agreement to acquire a controlling stake in Altshuler Shaham, and it remains unclear whether it will receive regulatory approval to proceed with both transactions. Discount Bank is likely to take this into account as it seeks to avoid further regulatory complications. Gallatin, by contrast, has previously received approval to own an insurance company, suggesting that its regulatory review could be relatively swift. Bank of Jerusalem has also expressed interest in acquiring CAL. Having previously attempted to buy Isracard, it has approached several business figures about joining its bid.
The Horesh-Harel-Gallatin group has an advantage in the eyes of Discount Bank because it has already completed due diligence, potentially allowing the process to move faster. The group is also expected to lower its offer compared with the bid that prevailed in the previous round. If it clears the regulatory hurdles, however, the transaction would be a significant achievement for Discount Bank.
Horesh and Harel still appear to view CAL as an attractive acquisition, even after losing the Fly Card business. CAL, managed by Yafit Gheriani, has enrolled approximately 200,000 customers in an alternative travel loyalty program, Fly All, helping it mitigate the impact of losing the previous program.
Discount Bank is required to reduce its stake in CAL to between 25% and 40% by May 2027. It has asked the Ministry of Finance to extend the deadline, following the Competition Authority’s decision concerning Horesh, but has yet to receive a response.
The upcoming elections, scheduled for a week and a half from now, are complicating the process. Legislative changes during this period require approval from a special committee, which is not expected to convene before the elections. A transitional government would also be unlikely to grant an extension, given opposition from various social advocacy organizations.
First International Bank, which holds a 28% stake in CAL, has veto rights over the sale and may seek compensation in exchange for consenting to the transaction. Nevertheless, the Bank of Israel and the Ministry of Finance are expected to put pressure on First International to agree to the sale.
