Adani Group completes acquisition of Haifa Port
New Delhi, January 10
The Adani Group has completed the acquisition of a port in Israel, giving it a foothold in the Mediterranean region which has been the focus of Indian diplomacy with External Affairs Minister S Jaishankar recently visiting nearby Cyprus, where he inked MoUs on defence and security cooperation.
Deal dynamics
- The Haifa Port, which handles nearly half of Israel’s container cargo, is also the country’s major port for passenger traffic and cruise ships
- The consortium of APSEZ and Gadot Group was formed with a shareholding of 70% and 30%, respectively. The consortium’s offer was equivalent to $1.18 billion
The Israel Ministry of Finance announced the completion of the formalities today but it is understood that the approval was made by the previous government a couple of weeks ago. The concession period of Haifa Port remains up to 2054.
The Adanis along with their Israeli partner had bid for Haifa Port Company Ltd (HPC), which operates the Port of Haifa — one of the two biggest commercial ports in Israel. The port, which handles nearly half of Israel’s container cargo, is also the country’s major port for passenger traffic and cruise ships.
The consortium of APSEZ and Gadot Group was formed with shareholding of 70% and 30%, respectively. The consortium’s offer was equivalent to $1.18 billion.
With the acquisition of the Port of Haifa, Adani Ports and Special Economic Zone Ltd (APSEZ) will expand its footprint into the European port sector, which includes the lucrative Mediterranean region.
The Port of Haifa is located 90 km north of Tel Aviv, close to the city of Haifa, the third largest city in Israel. It is also one of the major industrial areas of Israel. Haifa Port also has real estate available for the development of office spaces, hotels, tourism and other recreational activities.
The existing infrastructure at Haifa Port includes two container terminals and two multi-cargo terminals.
