Israel Corporation

ICL Group was Israel Corporation’s sole material holding and its one main operating segment in its 2025 periodic report.[2] The corporation also held interests in AKVA Group, Nordic Aqua Partners, and Prodalim, and participated in the management of investee companies through directors serving on their boards.[2] Its investment model emphasizes long-term value creation through capital allocation and active ownership rather than requiring outright control of every portfolio company.[1][2]

The corporation’s portfolio has changed substantially over time: the 2015 separation transferred shipping, power, automotive, semiconductor, and green-energy holdings to Kenon, while Israel Corporation retained ICL and Oil Refineries.[1][4] It subsequently surrendered control of Oil Refineries, also known as Bazan, in 2022.[5] The board’s strategy, adopted in 2019 and updated in 2026, combines maximizing the value of the strategic ICL holding with new investments in established businesses, particularly in Israel and Europe.[2]

Israel Corporation was established by the Government of Israel in 1968 as a vehicle for attracting foreign investors to the country’s economic development; shares were first offered to private investors in 1969, and the company was listed on the Tel Aviv Stock Exchange in 1982.[1] Shaul Eisenberg gained control in 1980.[6] During the 1980s, the corporation was among Zim’s owners, alongside the Israeli government and the Histadrut.[7] Zim was Israel’s leading shipping company by importance in an account of that period, when it continued selling old, unprofitable ships in an effort to restore profitability.[7] Israel’s merchant fleet totaled 3,050,000 deadweight tons in 1984.[7]

The acquisition of Israel Chemicals, subsequently known as ICL Group, proceeded through several government share sales.[8] In 1995, a government offering transferred nearly 25% of ICL to Israel Corporation, then headed by Eisenberg, together with an option to buy a further 17% by 1997.[8] Exercising the option raised the corporation’s holding to 41.9%, while the government retained 31.5%.[8] When the government placed its remaining holding on the Tel Aviv Stock Exchange in 1999, Israel Corporation increased its stake to 52%, outbidding Potash Corporation of Saskatchewan.[8]

In April 1999, the Ofer Brothers group completed the purchase of a 53% controlling stake in Israel Corporation from Erwin Eisenberg and his family for $330 million.[9] Ofer representatives, including Idan Ofer, joined the board as Eisenberg-family representatives resigned, and a new business plan was to be prepared in coordination with the outgoing and incoming controlling shareholders.[9] The corporation had recorded turnover of NIS 21.3 billion in 1998; its principal holdings around the time of the transaction included 52.07% of ICL, 48.9% of Zim, 26% of Oil Refineries, and National Semi-Conductor, alongside interests in commerce, services, finance, real estate, and high technology.[9]

In 2004, Israel Corporation bought the government’s remaining 49% interest in Zim for approximately NIS 500 million, making the shipping company privately owned.[10] Its 2004 annual report nevertheless forecast that “the supply growth rate is expected to be higher than the growth in demand for transport of containers.”[3] Zim undertook a major ship-investment program in 2006 and 2007.[3] A subsequent bondholder presentation in 2009 showed marine transport capacity increasing from 4.9 million TEU in 2000 to a projected 17.9 million TEU in 2013.[3]

In February 2007, Israel Corporation and a consortium involving Israel Petrochemical Enterprises and Glencore acquired Oil Refineries through Petroleum Capital Holdings at a company value of $1.57 billion.[11] Israel Corporation owned 80% of Petroleum Capital Holdings and was initially to be Oil Refineries’ sole controlling shareholder while the consortium awaited its control permit.[11] The permit delay involved Glencore’s holdings in Arab countries, together with security and antitrust reviews.[11]

In June 2013, after the liquidation of the electric-car venture Better Place and heavy losses at Zim, Israel Corporation announced that it was examining a division of its holdings into two companies.[12] The proposed new company would receive IC Power, IC Green Energy, Qoros, Zim, and Tower Semiconductor, while Israel Corporation would retain control of ICL and Oil Refineries.[12] The stated objectives were to focus operations, reach a broader investor base, and reduce the gap between the value of the underlying assets and the corporation’s stock-market capitalization.[12]

The proposal followed criticism of the discount at which the corporation’s holdings traded relative to their net asset value.[13] Analyst Noam Pincu estimated the discount at 46%, while the market valuation assigned to assets other than ICL and Oil Refineries was reported as negative $900 million.[13] Chairman Amir Elstein described the objective as exposing the holdings to “a broader and more focused investor base” in their respective areas of activity.[13] Under the proposed structure, shareholders would receive a share in the separated company alongside each existing Israel Corporation share.[13]

The strategic separation was completed on January 7, 2015, transferring IC Power, Qoros, ZIM, TowerJazz, and IC Green to Kenon.[1] Kenon began trading on the Tel Aviv Stock Exchange on January 11, after starting New York Stock Exchange trading the previous week.[4] Following the split, Israel Corporation retained 46% of ICL and 37% of Oil Refineries; its market capitalization was reported to have fallen 30% to NIS 10.6 billion.[4]

A March 2019 strategic update proposed investments across industries while continuing support for the existing portfolio.[1] Later that year, the corporation announced plans to invest between $350 million and $500 million in growth-stage businesses in food technology, agricultural technology, health, and Industry 4.0.[14] The plan focused on Israel and Europe, with equity investments of $70 million to $100 million in individual companies.[14]

The reduction of the refining investment continued through subsequent sales.[5] An initial transaction reduced Israel Corporation’s Bazan interest from 33% to 24%; an agreement for Hagag Group to purchase another 16.7% for NIS 555 million was reported in April 2022, and Israel Corporation records the sale as completed on September 15, 2022.[5][2] The sale left Israel Corporation with 7.3%, subject to an option held by qualified investors, and marked its surrender of control approximately fifteen years after acquiring the refinery from the state.[5]

Israel Corporation’s 2025 strategy targets established businesses rather than start-ups, emphasizing strong fundamentals, demonstrated commercial capability, and growth potential.[2] It seeks influence in investee companies without necessarily seeking control, and generally targets transactions of approximately $100 million to $150 million.[2] Up to $500 million was allocated for new investments, of which $206 million had been invested as of the report.[2] Given its existing exposure to agriculture and food through ICL and Prodalim, the corporation planned to focus future investments on other sectors.[2]

Israel Corporation held approximately 43.11% of ICL’s issued and paid-up share capital, approximately 44% net of dormant shares, and approximately 43.93% of voting rights.[2] Earlier dated accounts placed the ICL holding at 46% in 2019 and 43.95% in November 2024.[15][16] ICL’s activities include mining and the production of fertilizers and other chemicals.[15]

Israel Corporation acquired 18% of AKVA Group’s fully diluted share capital on October 21, 2021, for approximately NOK 637 million, equivalent to about $74 million at the time.[2] The transaction comprised approximately NOK 322 million for newly issued shares and NOK 315 million for shares purchased from existing shareholders.[2] On March 3, 2023, the corporation acquired approximately 9% of Nordic Aqua Partners’ fully diluted share capital for approximately NOK 89 million, then participated in additional funding rounds in December 2023 and October 2024 to maintain its interest.[2] Nordic Aqua Partners’ objective was to operate a land-based recirculating aquaculture system for salmon farming in China; its facility had capacity of 4,000 tons and was being expanded toward 8,000 tons.[2]

Agreements to invest in and purchase shares of Prodalim were signed in January 2025 and completed on March 5, 2025.[2] Prodalim develops natural solutions and ingredients, including concentrates, flavoring and fragrance materials, beverage bases, and other functional ingredients, as well as technology for reducing or removing alcohol from alcoholic beverages.[2] Israel Corporation reported a total investment of approximately $116 million and an initial fully diluted holding of approximately 27.5%.[2] Prodalim completed a Tel Aviv Stock Exchange initial public offering on February 24, 2026, raising approximately NIS 370 million at a valuation of approximately NIS 2.1 billion; Israel Corporation’s fully diluted interest consequently declined to approximately 23.26%.[17]

Millennium Investments Elad Ltd. and Idan Ofer were identified as joint controlling shareholders for purposes of Israel’s Securities Law in the 2025 periodic report.[2] Millennium held approximately 38.28% of share capital and 38.65% of voting rights, while Lynav Holdings held approximately 9.39% of share capital and 9.48% of voting rights.[2] Ofer directly held approximately 0.05% of both.[2] Lynav was held directly and indirectly by a trust of which Ofer was a beneficiary; the ownership chain above Millennium passed through Mashat Investments, Ansonia Holdings Singapore, Jelany Company, and Court Investments to a foreign discretionary trust of which he was a beneficiary.[2]

Aviad Kaufman was board chairman and Yoav Doppelt was president and chief executive officer.[2] Doppelt had served as chief executive since July 1, 2019, and had chaired ICL’s board since the same date.[2] The corporation had an eight-member board as of the report, and Nira Dror was serving as an external director from October 2025.[2]

Israel Corporation was the only Israeli company included in Fortune’s 2009 Global 500, which ranked companies by 2008 revenue.[18] It placed 466th, with revenue of $19.8 billion, net profit of $320 million, 18,574 employees, and assets of $14.7 billion.[18] Its revenue growth of 81.5% over 2007 made it the list’s tenth-fastest-growing company for 2008.[18] In 2019, it was described as the largest holding company on the Tel Aviv Stock Exchange, with core holdings then comprising 46% of ICL and 33% of Bazan.[15]

For the year ended December 31, 2025, Israel Corporation reported total sales of $7.153 billion and net income attributable to its owners of $87 million, compared with sales of $6.841 billion and owner-attributable net income of $190 million in 2024.[2] Most financial results arose from investee companies: ICL’s 2025 sales were $7.153 billion, and net income attributable to ICL shareholders was $226 million.[2] Prodalim’s results were included from the acquisition date, contributing $2 million in net income for the included period.[2]

At December 31, 2025, the corporation and its wholly owned headquarters companies reported approximately $721 million in liquid assets and $73 million in net financial assets, compared with $126 million in net financial assets a year earlier.[2] They received approximately $99 million in dividends from ICL during the reporting period.[2] A dividend policy adopted in January 2023 provides for distribution of 45% of annual net cash flows from investee-company dividends after deducting $75 million from those cash flows.[2]

The 2004 purchase of the government’s Zim stake drew severe criticism from the press and Israel’s State Comptroller on the grounds that the approximately NIS 500 million price undervalued the company.[10] Proposed foreign acquisitions also raised questions about state safeguards: in 1999, the Government Companies Authority maintained that Potash needed permission to acquire indirect control of ICL through Israel Corporation because of the state’s golden share in ICL.[19]

A proposed $13.5 billion Potash acquisition of ICL in 2012 faced Finance Ministry reservations concerning Israel’s economic and environmental interests; Potash already owned 14%, and a completed takeover was projected to give it approximately 25% of global production capacity.[20] In 2013, a proposed increase from 13.8% to between 51% and 100% encountered opposition from workers, unions, politicians, and ministers, with Finance Minister Yair Lapid calling the sale “an un-Zionist act.”[21]

Environmental scrutiny has extended to ICL and Bazan facilities.[15][22] An Adam Teva V’Din analysis of selected 2018 industrial air emissions estimated at least NIS 1.2 billion in public-health damage from Ofer-family-connected factories, including ICL and Bazan facilities; it did not apportion costs by ownership percentage, excluded water and soil damage, and concerned emissions permitted under ministry permits.[15] Oil Refineries and ICL Rotem placed first and second on the Environmental Protection Ministry’s 2019 “Red list,” with 586 and 516 points respectively; Bazan disputed the index as unreliable and misleading to investors.[22]

ICL’s Dead Sea minerals concession has prompted debate over environmental obligations, water levels, and competition for the next concession.[23] Its history extends from a private potash factory established in 1930 through nationalization in 1951, exclusive mining rights granted in 1961, and privatization in 1997.[23] In November 2025, ICL agreed to accept $2.54 billion from the state and relinquish its contractual right to match a competing bid for the concession succeeding the one expiring on March 31, 2030.[24] ICL had initially sought $6 billion, and its shares fell 15% after the agreement was reported.[24]