Israeli anti-trust commissioner Dror Strum has approved the takeover of national airline El Al by Arkia Airlines owner Knafaim-Arkia, but has attached significant strings to the deal.
The main requirement is that Knafaim-Arkia must sell all its current aviation operations, including the international and domestic businesses of Arkia Airlines and two tourism companies. This will clear the way for its 22% stake in El Al to be increased to 52% by December. El Al was floated on the Tel Aviv stock exchange in 2003.
Knafaim-Arkia will get voting rights in El Al in December after it exercises options and becomes a major shareholder, although it will be allowed to vote earlier if El Al plans a major "strategic" move.
The anti-trust commissioner also rules that any aviation units remaining unsold by the year-end deadline will be immediately transferred to a trustee.
Source: Flight International
