January 4, 2018 / 1:07 PM / a year ago

Delek Auto in talks to buy Veridis for $305 mln from Oaktree

TEL AVIV, Jan 4 (Reuters) - Israel’s Delek Automotive Systems is in advanced talks to buy control of environmental and infrastructure firm Veridis from investment manager Oaktree Capital Management for 1.05 billion shekels ($305 million).

Veridis operates in the collection, treatment and recycling of municipal waste and treatment of hazardous materials, desalination and electricity production.

Founded in 1993 as part of Veolia International, Veridis established the Ashkelon desalination plant and is a partner in OPC Mishor Rotem, Israel’s first private power station.

Delek Automotive imports Mazda, Ford and BMW cars to Israel and has been seeking to branch out into other sectors.

“The company believes this deal is a business opportunity that will enable it to penetrate new areas ... with significant growth potential whose fruits will be realised mainly in the long term,” Delek said in a statement on Thursday.

The deal, which Delek plans to finance from its own resources and through outside funding and loans, is subject to regulatory and other approvals. ($1 = 3.4461 shekels) (Reporting by Tova Cohen)

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