Seven and half years ago, Nochi Dankner acquired control of IDB Holding Corp. Ltd. (TASE:IDBH), a deal that put him in the Premier League of Israeli businessmen. Four years ago, he decided that the time had come to move abroad. For this purpose, he acquired Koor Industries Ltd. (TASE:KOR), whose main holding is Makhteshim Agan Industries Ltd. (TASE: MAIN), and turned it into IDB's international business arm.
Four years later, it turns out that Dankner's first international venture is not a great success. Makhteshim has suffered from weakness for a long time, reflected by a slump in profitability. This week, it was learned that Dankner is in talks with China National Chemical Corporation (ChemChina) to sell Makhteshim at a company value of $2.7 billion, well below the company's value when Dankner acquired Koor.
In recent years, Dankner has substantially expanded IDB's international presence. His objective is for at least half of the company's activity to be international, but has since discovered that it is cold outside.
Although Dankner chalked up a success, and profits, from Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) (a profit of about $1 billion), and increased IDB's international exposure, he has not been able to take over a single foreign company.
Dankner's various international investments have definitely opened the door to the milieu of global businessmen. But as far as managing international companies is concerned, in the past two years, with the help of the global economic crisis, Dankner has discovered that it is not as easy as it looks. The added value that he has in Israel is far less relevant abroad. Nonetheless, it does not appear that he intends to give up on taking IDB international, but he realizes that he has much still to learn before he takes over foreign companies.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2010
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