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Photo: Yariv Katz
Nochi Dankner
Photo: Yariv Katz
Photo: Sivan Faraj
Shufersal store
Photo: Sivan Faraj

Dankner sells control of Shufersal

IDB chairman gives up one of his key holdings in light of social protest, concentration committee recommendations

IDB Chairman Nochi Dankner is selling one of his key holdings – the Shufersal retail chain, in light of the social protest and the concentration committee recommendations.

 

Calcalist has learned that Dankner has agreed to sell his shares in the company to the Bronfman Fisher Group and Leo Noe.

 

This isn't the first time talks are being held for the sale of the controlling interest in the retail giant. In 2007, Dankner agreed to sell his shares to the Bronfman Group, but changed his mind at the last minute.

 

According to estimates, the sale was prompted by the social protest against the cost of living and food prices in Israel, as well as by the concentration committee recommendations, which threaten to force Israeli tycoons to sell some of their assets.

 

If the deal materializes, businessman Matthew Bronfman may be forced to sell his shares in Discount Bank as part of the implementation of the concentration committee recommendations. The sale will also turn Bronfman into one of the key elements in Israel's retail market, as he also controls IKEA Israel.

 

Protest leader to take action

Shufersal's market cap currently stands at NIS 3.57 billion ($970 million), with the company's share falling 25.4% since the beginning of the year. The Discount Investment Corporation, controlled by Dankner, holds 46% of the Shufersal shares, while Bronfman and Fisher's Isralom holds another 18.6%.

 

Dankner gained control of Shufersal upon completing the acquisition of IDB in May 2002. Since then, the Shufersal share has climbed 88% - an annual return of some 8.4%.

 

Itzik Alrov, who initiated the cottage cheese boycott, said in response to the move that he would consider turning to the antitrust commissioner.

 

"The antitrust commissioner should take this opportunity to demand, as part of the deal, Shufersal's dissolution into several elements rather than selling it as one piece, so as to avoid a situation in which one chain controls a market share of nearly 40%."

 

 


פרסום ראשון: 10.14.11, 08:41
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