Hebrew daily “Yediot Ahronot” reports that Ohad Rosen, the son of Israel Corp. (TASE: ILCO) president and CEO Yossi Rosen is acquiring 50% of the Livnat family's stake in Taavura Cement Containers. The Livnat family is a controlling shareholder in IDB Holding Corp. (TASE: IDBH).
Taavura has a fleet of 150 trucks to transport the full output of Nesher Israel Cement Enterprises, accounting for 90% of Israel's cement transportation market.
When the deal is closed, the Livnat family will own 33% of Taavura, the Rosen family 34%, and a British transport company will own the rest.
Yossi Rosen is familiar with Taavura's business through his previous job as CEO of Mashav Initiation and Development, the parent company of Nesher. Nesher and the Livnat family own Taavura Holdings, the parent company of Taavura Cement Containers, in equal shares. Taavura was the main source of income for the Livnat family for many years.
The Livnat family acquired part of the controlling interest in IDB, which owns half of Nesher, two years ago. Antitrust Authority director general Dror Strum made the acquisition of part of the controlling interest in IDB subject to the sale of Taavura. Strum wanted to ensure that after the Livnat family acquires part of the controlling interest in IDB, combined with its control of Taavura (a transporter of cement) and Nesher (a cement manufacturer), it would not exploit its ability to prevent competition from other transporters of cement, or prevent cement importers from competing against Nesher, by raising obstacles to the transportation of cement.
Strum's extension of the deadline for the Livnat family to sell the controlling interest in Taavura expired a few days ago. Strum must approve Rosen's acquisition of Taavura, since he is buying more than 25% of a monopoly, and because of his past links with the Livnat family and the cement industry.
Yossi Rosen said in response that this was a deal by his son, Ohad.
Published by Globes [online], Israel business news - www.globes.co.il - on March 7, 2005