Sources inform ''Globes'' that Antitrust Authority director general Ronit Kan has approved the acquisition by Israel Corporation (TASE: ILCO) of OPC Rotem Ltd. from Ofer (Energy Holdings) Ltd., a private company owned by Israel Corp.'s controlling shareholder Ofer Holdings Group, effectively permitting the merger of the sister companies.
In the party at interests deal, Israel Corp. is acquiring 80% of OPC Rotem, which is due to build a 400-Megawatt natural gas-fired power station at Mishor Rotem by 2013 at a cost of $400 million.
Kan's approval of the deal means that she does not consider Israel Corp's entry into the electricity market, currently monopolized by Israel Electric Corporation (IEC) (TASE: ELEC.B22), to be a problem. The decision reinforces assessments that the power station will sell some electricity to private customers, even though it has an option to sell power to IEC's national grid.
Israel Corp.'s acquisition still needs approval of its shareholders, the Public Utilities Authority (Electricity), and the minister of national infrastructures.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009