Nochi Dankner cancels Hanson Israel acquisition

IDB would have merged the company with Nesher Cement Enterprises, which the Antitrust Authority opposed.

IDB Holding Corp (TASE:IDBH), controlled by chairman and CEO Nochi Dankner, has cancelled its acquisition of cement company Hanson Israel. The acquisition was to have been made through IDB unit Clal Industries and Investments (TASE: CII) subsidiary Mashav Initiative and Development Ltd., which owns 75% of Nesher Israel Cement Enterprises

Clal Industries will pay Hanson Israel owner, Germany's Heidelberg Cement AG (XETRA: HEI) NIS 22.5 million - 5% of the NIS 450 million acquisition price - in compensation.

Clal Industries added that Mashav and Hanson have also withdrawn their merger application to the Antitrust Authority.

The Antitrust Authority opposed the acquisition of Hanson and its merger with Mashav on the grounds that it would harm competition in the cement industry, where Nesher is defined as a monopoly.

Clal Industries' share fell 1% today to NIS 23.55, giving a market cap of NIS 3.744 billion.

Published by Globes [online], Israel business news - undefined - on December 28, 2009

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