News Archive - August 2017

28 August 2017 - Chinese contractors not bringing lower prices - yet. Chinese companies authorized to build in Israel are not much cheaper than established Israeli companies. "When in Rome" Chinese companies must budget for high local costs like the Romans do. Full article

28 August 2017 - Kenon auto partner Chery entering Europe. Last week Chinese automaker Chery unexpectedly released photos of a road-vehicle to be shown at the Frankfurt Motor Show. Chery is a partner in the Israeli-Chinese joint venture Qoros which has endured financial troubles in recent reports. According to recent reports in China Chery tried to sell 25.5% of its holdings in Qoros, which planned to enter the European car market. Full article

28 August 2017 - Israel Post teams with Ali Express during Chinese shopping week. The 5-day sales event offers discounts up to 70%, special offers, refunds and express shipments. Israel Post and Ali Express are cooperating within the rebate program of up to 6%, on top of sale prices. Full article

27 August 2017 - A cross-border legal struggle: China wins in Israel. An Israeli was sued in Israel by a Chinese company after a Chinese court ruled against him. The Israeli Supreme Court ruled in favor of the Chinese company. The central issue was the "reciprocity requirement" between Israel and China, a principle anchored in Israeli law to encourage foreign countries to enforce Israeli rulings. However the verdict stressed Israel's generosity not to insist on China enforcing Israeli verdicts as a result of this case. Full article

24 August 2017 - Delek's controlling shareholder Tshuva requires 5% purchase of The Phoenix. The requirement is this: an entity that wishes to purchase Delek shares in Phoenix will purchase 4.99% of the shares immediately after signing an agreement, a holding for which no permit is required. If the entity does not receive a permit, as seems to be the trend in Israel recently, the entity will be able to sell the shares on the market or to another entity. Chinese company Tahoe is negotiating for purchase of the Phoenix and may come to an initial agreement as early as next week. Full article

24 August 2017 - Undisclosed Chinese companies have made offers to purchase Kardan's Tahal Group. Kardan NV has been conducting a sale procedure for Tahal in recent months in order to meet its obligations to its bondholders. It was reported in July that Chinese companies had made at least two binding purchase offers for Tahal at prices in excess of €120 million. Full article

22 August 2017 - BYD to supply 17 electric buses to Israeli city Haifa. The leading Chinese electric vehicle maker secured the order, of which the value was not disclosed. The buses are 12 meters long and powered by BYD’s iron phosphate batteries, with a range of 250 kilometers (155 miles) on one charge in urban conditions. It takes five hours to fully charge the vehicle’s batteries. Full article

22 August 2017 - Food chains in China are turning to the bachelor market. The rise in the number of singles and the postponement of marriage led to a surge in China's fast food shipments and pushed restaurants to seek creative solutions. Full article

22 August 2017 - Meitav Dash cancels sale to XIO. Investment house Meitav Dash has notified the Tel Aviv Stock Exchange of the cancellation of the deal for a merger with overseas investment fund XIO, after the deadline for completion of the deal in its revised format passed. Full article

21 August 2017 - Tower setting up Chinese fab. The Israeli semiconductor company has received a first payment of $18 million from Tacoma (Nanjing) Semiconductor Technology Co., rendering phase one of the companies' framework agreement. The two companies are founding a new 8-inch semiconductor fabrication facility in Nanjing, China. Full article

20 August 2017 - China's new outbound investment recommendations. The Chinese government issued a document last Friday detailing guidelines for investment by Chinese companies outside China. The document limits Chinese investment in industries such as hotels, cinemas, sports, entertainment and real estate, and completely prohibits investment in ventures related to gambling and the sex industry. Full article

16 August 2017 - Primavera Capital reportedly in talks to acquire IronSource. The Chinese fund Primavera Capital has been negotiating for two months to acquire the Israeli Internet company for $1 billion. The fund was recently in the running for control of Netafim. IronSource CEO Tomer Bar-Zeev reportedly denied the reports saying there are currently no negotiations for sale of the company. Full article

14 August 2017 - Economy minister: Lenovo owner plans investment in Israel. Chinese company Legend Holdings, the controlling shareholder in computer manufacturer Lenovo, plans to invest in Israel and establish business in it. The company is considering acquisitions of local companies in the coming years and opening a development or production center, Minister of the Economy and Industry Eli Cohen said. Full article

14 August 2017 - Calcalist interview. Lawyers from the New York firm Freshfields who are behind the Tnuva and ChemChina deals explain what the Chinese are looking for in Israeli companies, how they missed the exit at Netafim and what custom Israeli business people need to get rid of. Full article

13 August 2017 - Former Phoenix CEO Itamar Borovich brings more Chinese to the table. Chinese-owned Tahoe Investments is in talks to acquire control of the company at a value of NIS 4.6 billion, 90% of shareholders' equity. Tahoe is reportedly in parallel talks with the IDB Group to acquire control of Clal Insurance. Full article

13 August 2017 - 3 overseas cos competing in NTA signals tender. Italian company Ansaldo, French company Alstom, and Chinese company CRSC last Thursday submitted their bids in the Greater Tel Aviv light rail Red Line tender, NTA Metropolitan Mass Transit System Ltd. announced. The company offering the lowest bid will win the tender, after NTA decided not to take assign quality ratings to the bidders. Full article

13 August 2017 - Arkin slams Teva for not foreseeing generics crisis. Biotech and medical devices investor Mori Arkin said that the global generics market is in a terrible state, but it wasn't unexpected. Part of his reasoning was the trend of increasing overall competition,  including more Chinese companies. Full article

11 August 2017 - Qoros enters strategic cooperation with 4 Chinese companies. The automotive company has partnered with cross-industry Jiahe Zhongxin Group, insurance giant PICC, Tencent, and television and network video content service provider Nengliang Media for a major marketing initiative. The company has signed a contract for sales of 30,000 vehicles over the next two years. Full article

9 August 2017 - Director of the Israeli Companies Authority claims NTA Chairman and partner of the Catalyst Fund is acting in a conflicts of interest. Uri Yogev, Director of the ISraeli Companies Authority, is asking for clarification following claims that Yair Shamir has conflicts of interest between his private businesses and his activity as chairman of NTA in light of ties with Chinese companies. Full article

8 August 2017 - Orbotech Wins $40M Orders from China's CEC Panda for New Gen 8.6 LCD Fab. Orbotech has received orders totaling appx $40 million from TFT LCD panel maker, CEC Panda LCD Technology Co., Ltd. (a China Electronics Corp. company) for phase one of CEC Panda's new Gen 8.6 fab in Chengdu, ChinaFull article

7 August 2017 - OPC Energy postpones public offering. The issue proceeds are meant to pass upwards in the corporate chain; Kenon will use them to repay a $200 million loan from Israel Corporation (TASE: ILCO) used to finance an investment in Chinese auto venture Qoros. Some of the proceeds are meant to pay for construction of the power station that the Antitrust Authority has now barred. Full article

4 August 2017 - Israel Chemicals revenue down, profit halved. The company cited a depreciated Chinese yuan (against the dollar) as a reason behind declining sales. The company states, "...owing to our reduced exposure to phosphate fertilizers and our joint YPH venture in China, there were significant operating improvements in this quarter." Full article

3 August 2017 - Amorphical signs China calcium capsule deal. The company signed an exclusive marketing and distribution agreement for its amorphous calcium capsules with government-owned China Meheco, one week after obtaining marketing approval for its product there. The product will be launched in September and expects sales of "a few million dollars" in 2017, growing each year. Full article

3 August 2017 - Kenon to use OPC IPO proceeds to repay loan for investment in Qoros. OPC Energy has raised NIS 386 million in its TASE IPO. Controlled by Kenon Holdings Ltd, the IPO proceeds will be used to repay Kenon's $200 million loan from Israel Corporation used to invest in its China JV, Qoros. Full article
Kenon recently agreed to relinquish a controlling stake in Qoros following heavy losses.

2 August 2017 - 20,000 Chinese workers have submitted their candidacy for construction work in Israel. Hailing from two provinces, 7,200 of the 20,000 applicants will be chosen at random to complete medical tests and other screening. From that pool, 6,000 applicants will be selected to go to Israel in the coming months to work on construction projects. Full article

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