Contact us

Jain Irrigation of India buying 50% of Na'an Dan

The Indian agriculture conglomerate Jain Irrigation Systems is buying 50% of Israel's Na'an Dan Irrigation at a company valuation of NIS 140 million.

The two firms will be entering a memorandum of understanding on the transaction next week.

Sources in Israel's agriculture sector say that Na'an Dan preferred the Indian offer, even though Israeli company Netafim's offer was more attractive in many respects.

Among other things, Netafim undertook to maintain the operation of the two production centers on Kibbutz Na'an and Kibbutz Dan, and to continue to employ the workers.

Sources in the agriculture sector predict that the Indian company will transfer the production lines to India, which will result in layoffs.

The sources say that Na'an Dan rejected Netafim's offer because Netafim demanded a controlling share in the company, raising concerns that Netafim would take steps to integrate the management activities of the two companies, sending Na'an Dan's management home.

Sources in the irrigation sector say that any employees laid off as a result of the Indian acquisition would be easily incorporated into Netafim's production center at Kibbutz Yiftah.

Kibbutz Dan sold its 31% share in Na'an Dan to Kibbutz Na'an last week, which is currently the sole shareholder in the company.

In other Naan Dan news, the firm announced a $2 million deal selling technology and equipment to a tea plantation in India. It is not known whether the deal is connected with the Jain takeover.

Naan Dan has also sold $1.8 million worth of technology to Japanese tea plantations.

Antitrust commissioner Ronit Kan confirmed that the Antitrust Authority had received unofficial feelers from Israeli irrigation sector companies regarding a merger with Naan Dan, feelers that sector sources said came from Netafim. Kan indicated that she would disallow any mergers between irrigation technology companies, even if they sell 90% of their products abroad, if their union would impair competition in the local market.
Source : Haaretz

Comments are closed.