Subaru did not permit Barnovsky to acquire Zeevi’s share. Assessment: Zeevi will expand his businesses in the automobile sector.
Mirage, of the Zeevi group, today announced its intention of acquiring partner Barnovsky family’s share in Japanauto. This is due to the fact that Barnovsky did not receive Japanese manufacturer Subaru’s approval for the acquisition of the Zeevi group’s share, and for taking control of the car import agency.
At the beginning of April, the Barnovsky group announced its intention of exercising an option it was given to acquire the Zeevi group’s share. In the past few weeks, the parties reportedly held intensive negotiations with the Japanese manufacturer, which ultimately decided not to grant approval to the Barnovsky group.
Mirage announced that it expects to pay $30 million for its partner’s share, and that it estimates the option will be exercised by the beginning of July 2000.
Japanauto estimates that the Zeevi group will continue to manage the agency independently, following the acquisition, and will not seek other partners in the automobile sector. The acquisition of the Subaru agency is expected to serve the Zeevi group as a platform for expanding its businesses in this sector in the future.
Published by Israel's Business Arena on 14 May, 2000