Regulator Reportedly Demands Ayalon–Altshuler Merger Before WeSure Deal Approval

Israel’s Capital Market, Insurance and Savings Authority reportedly requires a merger of Ayalon’s provident-fund operation with Altshuler Shaham’s provident and pension businesses before approving WeSure Global Tech’s proposed acquisition of Altshuler Shaham Finance. The demand was reported on November 1. WeSure already controls Ayalon, and the authority reportedly will not permit it to control two separate provident-fund companies. The businesses differ substantially in size. Ayalon reportedly manages about NIS 3 billion in provident assets, while Altshuler manages NIS 107 billion in provident funds and NIS 37 billion in pensions. Altshuler’s two businesses together account for NIS 144 billion in those reported figures. On October 29, Ayalon said it was examining consolidation and possible cooperation following another approach from its parent company. Its stated aims included stronger distribution and service capabilities, access to existing professional systems and entry into pensions. Ayalon said it sought to “benefit from economies of scale,” while stressing that any decision must serve all its shareholders. Investment management remains a reported point of disagreement. Ayalon, led by chief executive Sharon Reich, wants the combined operation to bear its name and its investment team, headed by Tamir Hershkovitz, to manage investments. Altshuler had said its team, led by Leah Preminger, would remain. Ayalon is still examining the possible consolidation, and the acquisition requires regulatory approval.