Sources inform “Globes” that PazGaz, Israel's largest gas company, plans to acquire gas activities and companies in Eastern Europe for tens of millions of dollars.
The acquisitions will make PazGaz the first Israeli company to enter the liquid petroleum gas (LPG) market overseas. Paz Oil Company and brothers Ehud and Mordechai (Modi) Ben-Shach own PazGaz in equal shares.
Ehud Ben-Shach confirmed the reports in an interview with a "Globes" supplement in Hebrew today, saying, "There's nothing for it. Israel has the business and intelligence density per sq.m. of few other countries. If you add Israelis' aggressiveness and government over-regulation, it's no wonder that many companies are heading overseas.
"Under these circumstances and because the gas market has been quantitatively declining for years, PazGaz decided to move our know-how, experience, managerial capabilities and some of our investments overseas. We're now seeking gas infrastructure and marketing opportunities in Eastern Europe, especially in countries slated to join the euro between 2007 and 2010."
Ben-Shach added, "My personal experience abroad over the past six years focused on (real estate) in the UK, France and Romania. It gave the confidence that with the right mix of daring, thoroughness and limited risk, it's possible to succeed on a scale almost impossible to achieve in Israel.
"We're talking about acquiring complete gas companies or activities in the Czech Republic, Hungary and Romania. Their gas systems lag behind Israel's, except in one area: gas fueling. We'll invest $10-20 million in the first stage."
Published by Globes [online] - www.globes.co.il - on August 5, 2004