The Antitrust Authority has approved the takeover by Ofer Investments Ltd. subsidiary Melisron Ltd. (TASE: MLSR) of British Israel Ltd., after Restriction of Trade Tribunal Judge Nava Ben-Or approved a settlement between the companies and the Antitrust Authority. Under the settlement, Melisron will not have to sell the Grand Canyon Mall in Haifa, but will sell three other malls: the North Mall in Nahariya, the Hadar Mall Jerusalem, and the Harel Mall in Mevasseret Zion.
Three weeks ago, the parties submitted the settlement to the tribunal for approval. The settlement was reached following a long process at the tribunal, but the details were kept confidential at the request of the parties, partly to protect the companies' commercial secrets.
"I accept the argument of the Antitrust Authority director," said Judge Ben-Or in her ruling. "The proposed settlement meets the competition concerns of the Antitrust Authority director arising from the merger of Melisron with Ofer Investments and British Israel Investments. The settlement does not materially change the terms of the merger set by the Antitrust Authority director in his decision of January 2011 and amended in March 2011."
Instead of the selling the Grand Canyon Mall in Haifa, the merged company will sell three other malls, which Judge Ben-Or ruled, "are a proper alternative to allay the competitive concerns raised. The two other malls whose sale is required by the merged company - the Raananim Mall and the Savionim Mall, will also be sold, and there has been no change in this regard. The agreed dates of the sales do not materially change the original principles of the merger terms."
Melisron's share price rose 2.9% today to NIS 70.08, giving a market cap of NIS 2.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2012
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