Shapir Engineering Plans Acquisition of Ashdod Refinery Amid Rising Oil Prices
Shapir Engineering aims to increase its stake in Ashdod Refinery to 65% through a NIS 1 billion investment. The surge in oil prices, driven by geopolitical tensions, is expected to enhance refining margins, making this acquisition strategically significant.
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Shapir Engineering and Industry intends to acquire controlling shares in Ashdod Refinery, increasing its stake from 10% to potentially 65% with an investment exceeding NIS 1 billion. The refinery, which has lacked a controlling shareholder since its separation from Paz Group in 2023, has seen significant share price increases of 56% in March amid rising oil prices due to geopolitical conflict.
Shapir holds options to purchase additional shares, with the first option allowing it to acquire 4.9% by August. In response to regulatory concerns, Shapir has agreed to divest two natural gas distribution companies for NIS 230 million. This acquisition strategy is designed to strengthen Shapir's position in the refining sector, although it faces scrutiny regarding potential conflicts of interest.
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