A PYMNTS Company

Israel: Delek Drilling considering merger

 |  April 18, 2016

Israeli conglomerate Delek Group’s gas and oil exploration units, Delek Drilling and Avner Oil Exploration, are considering merging to reduce costs, attract new investors and simplify the financing process in developing the Leviathan natural gas field.

Delek Drilling’s board met last week and decided to appoint a special independent committee of directors to examine a possible merger with Avner, it said in a statement to the Tel Aviv Stock Exchange on Sunday.

Delek Group directly holds 6.1 percent of Delek Drilling and 8.5 percent of Avner, although its Delek Energy unit owns 63 percent of Delek Drilling and 47.5 percent of Avner.

Delek Group owns 87 percent of Delek Energy, while Delek Drilling’s chairman, Gideon Tadmor, is also Avner’s chief executive.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.