Blue Square Israel (NYSE: BSI; TASE: BSI) and the Dor Alon group are planning to enter two new fields. Blue Square chairman and Alon Israel Fuel CEO David Wiessman told “Globes” that the companies would begin marketing insurance policies, including medical insurance, and provide loans and financing for specific sectors. “We plan to take advantage of the fact that 100 million people pass through Dor Alon’s filling stations and Blue Square’s branches annually, and leverage this for marketing purposes,” he said. According to Wiessman, the plan is to provide unique financial services, such as loans for car purchases, student loans, and medical insurance policies, through both a new customers club and the companies’ existing customers clubs. Wiessman noted that in addition to the 100 million visitors, the marketing potential of millions of people traveling on the Yitzhak Rabin Highway (Highway No. 6), also known as the “Cross Israel Highway”, should also be taken into account.
Wiessman owns 6% of Derech Eretz Highways (1997) Ltd., the franchise holder for the Cross Israel Highway, and controls the company that maintains the road, together with the Canadian Highway Infrastructure Corporation (CHIC). Wiessman believes that passengers on the road also constitute large-scale marking potential.
Last night, with Minister of Industry, Trade, and Labor Ehud Olmert present, Derech Eretz Highways and the Dor Alon group inaugurated the first two filling stations on the Cross Israel Highway. Dor Alon will operate four filling stations on the road. The other two will open in October.
Wiessman hinted that Dor Alon would not acquire the filling stations of Sonol Israel Ltd. or Delek the Israel Fuel Corp. if the two companies merge and are forced by Antitrust Authority director general Dror Strum to sell some of their filling stations. Wiessman said that he was not interested in the filling stations because a franchise holder operated them. Wiessman said he preferred operating filling stations under his company’s full ownership.
Published by Globes [online] - www.globes.co.il - on September 22, 2004