Delek Automotive Systems Ltd. (TASE: DLEA), the Ford and Mazda vehicle importer, is expanding into bus and truck imports. Delek Auto, which imports Ford and Mazda cars, together with Comasco Construction Machinery and Equipment Ltd., which imports JCBs, have signed a memorandum of understanding (MoU) with Automotive Equipment, controlled by Tzvi Neta, to buy the import and distribution concession for MAN buses and trucks, for NIS 120 million. Automotive Equipment imports Suzuki cars.
MAN is a German company, which manufactures buses, trucks, engineering equipment and commercial vehicles. MAN has been hit hard in recent years in Israel by the entry of Chinese manufacturers into this market. It has lost strategic contracts and seen its market share fall, although it remains strong in the truck sector.
The deal also includes a 5.25 acre plot in Rishon Lezion. Negotiations continue on the final terms of the deal, which will be subject to the approval of the Israel Antitrust Authority.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2016
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