Discount and Mercantile merge: The bank will remain as a separate brand

The boards of Discount and Mercantile banks approved the merger of Mercantile into Discount. The move, which still requires regulatory approval, aims to streamline operations by consolidating infrastructure. Mercantile will continue to operate as a separate brand in its areas of strength, including the Arab and ultra-Orthodox sectors. The workers' committee is expected to oppose.

The boards of Discount Bank and Mercantile Bank approved today (Tuesday) the merger of Mercantile into Discount. The move, moving from the evaluation phase to the execution phase, still requires regulatory approvals. The goal of the merger is to streamline operations by consolidating infrastructure and processes, reducing redundancies, and increasing investments in technology, digital, and artificial intelligence. Discount emphasized that Mercantile will continue to operate under its own brand, primarily in areas where it is strong, including the Arab and ultra-Orthodox communities, small and medium businesses, and local authorities. In the first phase, branches will continue to operate as usual. Discount Group CEO Avi Levi defined the merger as part of the transformation process the group is undergoing, stating that the move "will simplify the group's structure and improve the efficiency ratio." Mercantile CEO Barak Nardi promised customers continuity of service. However, the merger is expected to face opposition from the Mercantile workers' committee, which has already announced its principled objection. Discount has not yet disclosed how many jobs will be affected by the merger or whether branches will be closed.