Israeli Antitrust Authority director general Dror Strum will only approve the acquisition of Phoenicia Glass Works Ltd. (Phoenicia Yeruham) by Israel Equity (IEL), if Phoenicia“s container activities…
Israeli Antitrust Authority director general Dror Strum will only approve the acquisition of Phoenicia Glass Works Ltd. (Phoenicia Yeruham) by Israel Equity (IEL), if Phoenicia“s container activities are kept separate from Tadbik Advanced Technologies, controlled by IEL. 3i (Investment In Industry) group, owned by Aviv Algor and Ian Nigel Davies, owns Phoenicia Glass Works, which makes containers for beverages, food and candles. It was declared a monopoly in this sector in 1998. IEL, which is owned by Dov Tadmor and the US-based Mandel family, controls Tadbik, which makes packaging and customized labels, including ones for containers. The company also produces plastic labels and shrink wrap for containers. The Antitrust Authority“s economics division found that because Phoenicia Glass Works“ customers for its jars also extensively use plastic packaging for storing their products, a concern existed that Phoenicia Glass Works could exploit its control of jar making to link the marketing of jars to Tadbik“s activities. Strum therefore gave approval for IEL“s acquisition of Phoenicia Glass Works on condition that Phoenicia Glass Works may not link the supply of glass storage containers or related services, to the purchase or use of any product or service from IEL or companies held by IEL.