Two leading energy firms had hoped to reduce imports.
Antitrust Authority director general Ronit Kan has crossed swords yet again with Dor Alon Energy in Israel (1988) Ltd. (TASE: DRAL), controlled by chairman David Weissman. Sources inform ''Globes'' that the Antitrust Authority has turned down a joint request by Dor Alon and Sonol Israel Ltd, to purchase fuel from Oil Refineries Ltd. (TASE:ORL), because of the possible harm to competition. Antitrust Authority officials claim the rejection of the application was one of the reasons behind the attacks Weissman made on the authority in his interview with "Globes".
Kan gave her approval in principle several months ago to Dor Alon and Sonol to jointly import fuel, with the aim of reducing import costs and enabling the companies to compete on better terms with the Oil Refineries. The two companies had asked to be allowed to negotiate jointly with Oil Refineries in order to keep costs down. The authority claims, however, that allowing the two to jointly purchase fuel from Oil Refineries would have harmed competition, and rendered meaningless an earlier decision not to allow the merger between Dor Alon and Sonol.
Sonol and Dor Alon hold an aggregate 45% share of the fuel market in Israel. The companies have traditionally imported 30-40% of their fuel requirements but are now seeking to reduce the quantities they import and purchase from Oil Refineries instead.
Published by Globes [online], Israel business news - www.globes.co.il - on February 21, 2008
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