The chart of control of Israel's holding companies, which Dun & Bradstreet Israel has published since 2004 shows a clear trend: there is mobility in the Israeli economy; it is not a closed club.
"Globes" has obtained a copy of the Dun & Bradstreet Israel has chart of control for 2009. Comparison of the charts of control for 2003 through 2009 shows that two-thirds of the dominant holding companies in 2009 were either small or were not included on the chart in 2003. Three new names appeared on 2009 chart alone: Ilan Ben-Dov, who acquired control of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) for NIS 5.3 billion; Shaul Elovitch, who acquired the controlling interest in Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) from Ap-Sab-Ar Holdings Ltd. (the Apax Partners-Saban Capital Group Inc.-Arkin consortium) for NIS 7 billion; and real estate and industrial magnate Shlomo Meltzer.
The number of prominent families increased from six in 2003 to sixteen in 2009.
A third of the groups appearing on the 2009 chart of control were small or mid-sized groups in 2003, which were peers with dozens of other groups that have failed to grow or have even weakened over the years.
Dun & Bradstreet Israel defines a prominent holding company as a company which, thanks to extensive holdings in Israeli companies, has a material effect on the Israeli public in the sector in which it is engaged.
Five of the sixteen groups that did not appear on the Dun & Bradstreet Israel chart of control in 2003 are the Azrieli Group, Shmeltzer Group, Bronfman Group, Elovitch Group, and Ben-Dov Group.
The Shmeltzer Group, which made its first appearance in 2009, is engaged in vehicle leasing through S. Shlomo Holdings Ltd. (TASE:SHLD); in insurance through Shlomo Insurance Company Ltd.; in real estate through Shir Real Estate Ltd.; in industry through Afcon Industries Ltd. (TASE: AFIN), Israel Shipyards Ltd., and Tadiran Telecom Ltd.; and in logistics through Gold Bond Group Ltd. (TASE:GOLD)
Azrieli Group Ltd. (TASE: AZRG) made the chart of control a few years ago. Through Kanit Hashalom Investments Ltd, the company controls Granite Hacarmel Investments Ltd. (TASE: GRNT) whose subsidiaries include Sonol Israel Ltd,, Tambour Ltd. (TASE:TMBU), and Supergas Israel Gas Distribution Company Ltd. In 2008-09, Azrieli Group acquired 20% of credit card company Leumi Card Ltd. and 5% of Bank Leumi (TASE: LUMI)
The Bronfman Group first appeared in the chart of control following its acquisition of the controlling core in Israel Discount Bank (TASE: DSCT) from the state.
The Dun & Bradstreet Israel charts of control in 2004-06 included mid-sized and small groups. It is possible to trace over time which of the groups on the latest chart have grown from small groups, and which groups have weakened. The groups that have strengthened include the Tshuva Group (which includes Delek Group Ltd. (TASE: DLEKG)), Fishman Group, Leviev Group (which includes Africa-Israel Investments Ltd. (TASE:AFIL)), Weissman-Biran Group (Alon Israel Oil Company Ltd.), and the Hamburger Group (Harel Insurance Investments and Financial Services Ltd. (TASE: HARL)).
The mid-sized groups in 2003 that have failed to grow over the years are the Nimrodi Group (Israel Land Development Company (TASE: ILDC) and Ma'ariv), the Borovich Group (then Arkia Airlines Ltd., now El Al Israel Airlines Ltd. (TASE: ELAL)), the Shrem Fudim Kelner Group (Shrem Fudim Group Ltd. (TASE: SFG)), the Zeevi Group, the Schocken Group (Haaretz), the Shachar Kass Group (Mayer's Cars and Trucks Ltd.), the Dankner Group (not Nochi Dankner of IDB Holding Corp. Ltd. (TASE:IDBH)), the Mozes Group (Yediot Communications Ltd.), the Grinfeld Group (Kardan NV (TASE: KRNV;AEX:KARD), and the Salkind Group (Elco Holdings Ltd. (TASE: ELCO)).
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2010
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