Israel Corporation
Encyclopedia
Israel Corporation is Israel’s largest holding company
. Fifty of its manufacturing activities and 70% of its consolidated revenues derive from global operations. Its core holdings are fertilizers and specialty chemicals, energy, shipping and transportation. Israel Corp is a constituent of the TA-25 Index of leading shares of the Tel Aviv Stock Exchange
. Two of its major holdings, Israel Chemicals
and Oil Refineries Ltd
are also constituents of the TA-25 Index.
of the Israeli Labor Party, who changed the Encouragement of Capital Investments Law to attract foreign investment. The change ensured that the company’s owners were exempt from taxes for 30 years and received other benefits. Shares of the company were offered to the public in 1969, 1970, 1974 and 1982, and the company was listed on the Tel Aviv Stock Exchange in 1982.
After Eisenberg's death in 1998, the family sold control of the company to the Ofer family.
In 2007, 55% of the equity of the company was held by the Ofer Brothers Group
, 18% by Bank Leumi
and the remainder by the public.
, Oil Refineries Ltd
, Tower Semiconductor
, Better Place and Zim Integrated Shipping Services
.
sale incident, in which the company's stake in the country's largest oil refinery was bought out by Israel's treasury, for what many considered to be an overvalued sum, especially since Israel Corp. was bound by an agreement to return its holding of Bazan to the state without compensation. The company had allegedly blocked the film from being broadcast on any of Israel's commercial TV channels, and it was finally broadcast on Channel One.
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
. Fifty of its manufacturing activities and 70% of its consolidated revenues derive from global operations. Its core holdings are fertilizers and specialty chemicals, energy, shipping and transportation. Israel Corp is a constituent of the TA-25 Index of leading shares of the Tel Aviv Stock Exchange
Tel Aviv Stock Exchange
The Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
. Two of its major holdings, Israel Chemicals
Israel Chemicals
Israel Chemicals Ltd. , also known as ICL, is a multi-national Israeli manufacturing concern that develops, produces and markets fertilizers, metals and other special-purpose chemical products.-History:...
and Oil Refineries Ltd
Oil Refineries Ltd
Oil Refineries Ltd. , located in Haifa Bay, is Israel's largest Oil refinery. Using its state-of-the-art industrial facilities, ORL is capable of refining approximately 9.8 million tons of crude oil per year providing a variety of products used in industrial operation, transportation, private...
are also constituents of the TA-25 Index.
History
The Israel Corp was founded by Shaul Eisenberg in 1968, who was one of the first strategic foreign investors in Israeli history, under the initiative of then Minister of Finance, Pinchas SapirPinchas Sapir
Pinchas Sapir was an Israeli politician during the first three decades following the country's founding.He held two important ministerial posts, Minister of Finance and Minister of Trade and Industry as well as several other high-ranking governmental posts...
of the Israeli Labor Party, who changed the Encouragement of Capital Investments Law to attract foreign investment. The change ensured that the company’s owners were exempt from taxes for 30 years and received other benefits. Shares of the company were offered to the public in 1969, 1970, 1974 and 1982, and the company was listed on the Tel Aviv Stock Exchange in 1982.
After Eisenberg's death in 1998, the family sold control of the company to the Ofer family.
In 2007, 55% of the equity of the company was held by the Ofer Brothers Group
Ofer Brothers Group
The Ofer Group is an Israeli family shipping business owned by the Ofer family. The Ofer family owns one of the largest private shipping companies in the world....
, 18% by Bank Leumi
Bank Leumi
Bank Leumi is an Israeli bank. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist movement to promote the industry, construction, agriculture, and infrastructure of Palestine.-History:...
and the remainder by the public.
Major Holdings
Israel Corp's major holdings are Israel ChemicalsIsrael Chemicals
Israel Chemicals Ltd. , also known as ICL, is a multi-national Israeli manufacturing concern that develops, produces and markets fertilizers, metals and other special-purpose chemical products.-History:...
, Oil Refineries Ltd
Oil Refineries Ltd
Oil Refineries Ltd. , located in Haifa Bay, is Israel's largest Oil refinery. Using its state-of-the-art industrial facilities, ORL is capable of refining approximately 9.8 million tons of crude oil per year providing a variety of products used in industrial operation, transportation, private...
, Tower Semiconductor
Tower Semiconductor
Tower Semiconductor Ltd. , global specialty foundry leader and its fully owned U.S. subsidiary Jazz Semiconductor, operate collectively under the brand name TowerJazz, manufacturing integrated circuits with geometries ranging from 1.0 to 0.13-micron...
, Better Place and Zim Integrated Shipping Services
Zim Integrated Shipping Services
Zim Integrated Shipping Services Ltd. , formerly ZIM Israel Navigation Company Ltd. and Zim American Israeli Shipping Inc., is the biggest cargo shipping company in Israel, and 10th largest in the world...
.
Criticism
The Israel Corporation criticized in a documentary examining the influence of big-business on Israeli politics. The movie - "The Shakshuka Method" - chronicles the history of the company, and how it had allegedly benefited from a "revolving-door" practice between the public and the private sector, from its extensive network of connections in Israel's political system and economic circles, and from a high degree of influence on local media to squelch potential criticism. Among the major allegations presented by the film was the BazanOil Refineries Ltd
Oil Refineries Ltd. , located in Haifa Bay, is Israel's largest Oil refinery. Using its state-of-the-art industrial facilities, ORL is capable of refining approximately 9.8 million tons of crude oil per year providing a variety of products used in industrial operation, transportation, private...
sale incident, in which the company's stake in the country's largest oil refinery was bought out by Israel's treasury, for what many considered to be an overvalued sum, especially since Israel Corp. was bound by an agreement to return its holding of Bazan to the state without compensation. The company had allegedly blocked the film from being broadcast on any of Israel's commercial TV channels, and it was finally broadcast on Channel One.