Business Data Israel (BDI) reports that Israel’s 19 wealthiest families controlled an aggregate NIS 248 billion in revenue in 2006, 34% of the NIS 722 billion earned by the country’s 500 largest companies altogether. This is BDI’s third annual concentration index on concentration in the Israeli economy.
BDI adds that the aggregate income controlled by the 19 families equaled 88% of the government budget of NIS 283 billion, and over half of the business product of NIS 457 billion.
The 19 families include the Dankner, Ofer, Tshuva, Weissman, Saban, Arison, Bino, Federmann, Borovich, Leviev, Hamburger, Azrieli, Fishman, Strauss, Wertheim, Alovich, Zisapel, Shahar, Kass, and Schmelzer families.
Three changes appear in the 2006 list, compared with 2005: Steff and Eitan Wertheimer were taken off the list following the sale of 80% of Iscar Ltd. to Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK-A); and the Alovich and Azrieli families were added.
Nochi Dankner, the chairman and CEO of IDB Holding Corp. Ltd. (TASE:IDBH), headed the 2006 list, and his share of the 19 families’ aggregate income rose to 18.7% from 16.3% in 2005. His income rose by 15% thanks to acquisition of 31% of Koor Industries Ltd. (TASE:KOR) in 2006 for $394 million.
Yitzhak Tshuva, the controlling shareholder in Delek Group Ltd. (TASE: DLEKG), made the biggest climb in the list, compared with 2005, after acquiring Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) from Shahar and Kass at a company value of $670 million. His share of the 19 families’ aggregate income rose from 5.9% to 10.9%, an increase of 84%.
The BDI concentration index examines the controlling shareholders in influential Israeli companies, effectively running them. The index does not examine the families’ wealth; therefore, families with similar wealth, but with little economic influence and/or whose wealth is derived from business overseas, are not included.
Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007