ORL’s acquisition of balance 50% stake in Carmel Olefins Ltd by year end

30-Oct-09

Israel's largest oil refiner Oil Refineries Ltd (ORL) has inked an agreement to acquire the balance 50% stake in Carmel Olefins Ltd by the end of the year held by Israel Petrochemical Enterprises Ltd. Under the deal, ORL will allocate 17.75% of its shares to Israel Petrochemical for the balance 50% stake in Carmel. Following the deal Israel Petrochemical will own 30.7% of ORL. Carmel, which is located adjacent to ORL's refinery in the Haifa Bay area, serves as a downstream plant for the refinery. The vast majority of Carmel's raw materials have been sold to it by ORL. "This merger serves as a focal point in the strategic plan to expand the company's operations in the petrochemical sector, while leveraging the synergies to enhance profitability and drive growth," ORL Chairman Yossi Rosen said. "Once the merger is completed, ORL will evolve into a unique refinery in the Mediterranean basin, fully integrating the independent capabilities of the petrochemical industry with its refining abilities."