New Delhi: Israeli Prime Minister Benjamin Netanyahu attended the ceremony for Adani Group’s acquisition of the Haifa port. He described the deal as an “enormous milestone” and said that it will improve connectivity between the two countries. The deal is a big move by Adani which will enable the increased maritime traffic between Asia and Europe.
At the event, Netanyahu said that during World World I, brave Indian soldiers helped liberate the city of Haifa and today, ‘robust Indian investors’ are helping to liberate the port in the city. He added that he talked about the connectivity between Israel and India through transportation lines, air routes and sea routes with his ‘good friend’ PM Narendra Modi.
הצטרפו לשידור החי: דברי ראש הממשלה בנימין נתניהו ושרת התחבורה מירי רגב בטקס כניסת חברת א.ד.ג.ד. בע”מ לנמל חיפה https://t.co/2fDAe2PQiN
— ראש ממשלת ישראל (@IsraeliPM_heb) January 31, 2023
Netanyahu said that Haifa will become an entry and exit point for goods that reach the Mediterranean and Europe directly without having to go around the Arabian peninsula and through three choke points.
The deal
A consortium of Adani Ports and Special Economic Zone (APSEZ) and Israel’s Gadot Group won the tender to privatise the Haifa port for USD 1.18 billion in July 2022. The process of purchase was completed on January 11, after which upgradation work of the port has been going on in Haifa.
APSEZ holds 70 per cent of the stake while its Israeli partner Gadot has the rest 30 per cent. Adani Group operates 13 sea terminals in India and controls 24 per cent of India’s maritime trade.
This deal came in as a big boost to Gautam Adani’s company, which just completed an FPO, and went fully subscribed on the last day. The conglomerate is facing a fall in stock prices while chairperson Gautam Adani is losing wealth after the Hinderburg report which alleged the group of “brazen stock manipulation and accounting fraud.”