Shapir Engineering Refuels Ashdod Refinery Control Bid After Gas Sale
The concentration committee will review Shapir Engineering's bid for Ashdod refinery control after selling its gas assets to Allied for 230 million NIS.
The concentration committee is set to hold a renewed discussion regarding Shapir Engineering's request for a control permit in the Ashdod refinery (Bazat), following a previous decision in late July by a 2-3 majority to recommend against granting the permit. This development appears to be tied to Shapir's recent agreement to sell its natural gas operations to Allied for 230 million NIS. However, the Government Companies Authority has conditioned the permit on the completion of this divestment.
Antitrust Commissioner and Committee Chair Michal Cohen, along with Ministry of Finance Director General Israel Malachi, opposed granting the control permit to Shapir. They argued that acquiring the refinery—classified as a concentrated entity—would increase Shapir's overall market concentration, placing it at the top tier of systemic conglomerates in Israel. Conversely, National Economic Council Chair Prof. Avi Simhon maintained that the approval could be granted subject to Shapir's commitment to significantly invest in the refinery's development.
Ministry of Energy Director General Yossi Dayan submitted a position paper arguing that without a core controlling shareholder or strategic investor, Bazat would struggle to operate efficiently, finance its development, or make optimal decisions. Consequently, both the Ministry of Finance and the Ministry of Energy are pressing the concentration committee to reconsider the issue ahead of the upcoming Knesset elections. Meanwhile, Allied and Shapir signed a binding agreement for the transfer of Shapir's natural gas activities, including Super N.G. and Super N.G. Hadera and the Valleys, which hold licenses for natural gas distribution in central Israel and the Hadera region.
