Israeli Market Shakeup: Arkia Deal, Nvidia CEO Resignation, and Retail Mergers
A comprehensive economic round-up covering Arkia's ownership shift, Nvidia CEO Jensen Huang's resignation, C.M. Composite Materials' financial crisis, Victory's retail ambitions with Carrefour, Shufersal's move against Super-Pharm, Partner's record profits, and Pelephone's acquisition of Wecom.
Arkia Israeli Airlines is undergoing a major ownership shift as the Nakash brothers signed an agreement to bring in new investors. Under the deal, the buyer group will inject tens of millions of dollars into the airline in exchange for a controlling stake.
In global tech, Nvidia experienced a massive shock as CEO Jensen Huang stepped down after leading the chip giant for 33 years, resigning from the board as well. CFO Colette Kress was appointed interim CEO, and Nvidia shares plunged about 10.5% ahead of the Wall Street opening, threatening to wipe out $440 billion in market value.
Meanwhile, C.M. Composite Materials, an Israeli manufacturer supplying components to Rafael, Elbit Systems, and Boeing, has filed for an emergency corporate rehabilitation process at the court amid a severe financial crisis. The company, which employs 105 workers, has accumulated 26 million shekels in debts.
In the retail sector, Victory Supermarket Chain CEO Eyal Ravid is orchestrating a major shakeup by acquiring a 30% stake in Carrefour Israel alongside institutional investors. The plan aims to merge operations into a 6 billion shekel retail giant, pending approval from the Competition Authority.
At the same time, Shufersal is shifting its real estate strategy by refusing to renew Super-Pharm's lease at the Lev HaMifratz Mall, opting instead to launch the 99th branch of its rival Be drugstore chain, owned by the Amir brothers.
Telecom operator Partner Communications reported a stellar third quarter with net profit surging 12% to 101 million shekels and revenues rising 6% to 829 million shekels, alongside a plan to distribute half a billion shekels to shareholders, though free cash flow dropped 66% due to a one-time handset inventory buildup.
Finally, Pelephone has finalized its acquisition of mobile operator Wecom for 265 million shekels after resolving previous tax disputes that nearly derailed the multi-million deal.
