Last month, NewMed Energy LP (TASE: NWMD) cancelled a 20-year, $6.7 billion gas supply agreement with two new power stations of Dalia Energy Companies (TASE: DALIA) because of disagreements with the Competition Authority over the terms of the deal. In the end, the Competition Authority approved the deal in its entirety, but nevertheless, according to reports by Dalia Energy Companies and its parent company Meshek Energy - Renewable Energies (TASE: MSKE) to the Tel Aviv Stock Exchange, NewMed insists that the deal is cancelled. It is not clear what the reason for that is.
The official stance as reported to the stock exchange is failure to meet pre-conditions for approval of the deal. These are securing finance, and obtaining approval from the Competition Authority. The Competition Authority’s approval was delayed, and at a decisive meeting the Authority set out several substantial reservations that it had about the deal, but it ultimately withdrew all of them.
Despite that, Dalia Energy reports that "NewMed has given notice that it reiterates its claim that the notice of cancellation of the agreement given on September 24, 2026 was given in accordance with the provisions of the agreement since it says that the conditions of the agreement were not fulfilled on time." It is not clear what NewMed’s object is, and whether it wants further changes to the agreement.
What now? Dalia Energy insists that the agreement is in force. "The position of the company is that the notice of cancellation was not given in accordance with the terms of the agreement and the law and that the agreement came into force with the fulfilment of the pre-conditions stated in it. The company intends to prosecute all its rights in accordance with the agreement and the law, and will provide updates on developments in due course." This apparently includes a legal battle, should that prove necessary.
No response has yet been received from NewMed.
Published by Globes, Israel business news - en.globes.co.il - on October 7, 2026.
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