The shares of Adani Ports & Special Economic Zone Ltd. rose on Friday after a joint venture led by the Indian port operator won an Israeli government tender to purchase the Haifa Port for 4.1 billion shekels ($1.2 billion).
The company, led by Asia’s richest man Gautam Adani, and its partner Gadot Chemical Tankers and Terminal Ltd., will acquire 100% ownership of Haifa Port, Israel’s finance ministry announced late Thursday. According to the ministry, the privatisation was part of a larger reform of local ports aimed at increasing competition and improving efficiency.
Adani Ports shares rose as much as 2.1 percent in Mumbai trading on Friday, outperforming the benchmark S&P BSE Sensex, which rose as much as 0.6 %
According to Reuters, Adani Ports will hold a 70% stake in the joint venture, with Gadot holding the remainder.
Adani’s ports-to-power conglomerate has expanded its global footprint rapidly since acquiring Holcim Ltd.’s Indian cement units for $10.5 billion in May of this year. Adani, a first-generation entrepreneur, has aggressively expanded his empire beyond coal, where he made his fortunes, into data centres, airports, digital services, media, and health care.
Adani Port’s latest addition will compete with a new port in Haifa, which was inaugurated in September by Shanghai International Port (Group) Co.