fbpx

August 8, 2017

Israel’s drip irrigation giant sold to Mexican company for $1.5 billion

A Mexican industrial group will acquire control of the Israeli drip irrigation giant Netafim for $1.5 billion.

Mexichem has agreed to buy an 80 percent stake in Netafim, the world’s largest drip irrigation company, in a deal valuing the company at $1.895 billion. It will acquire a 61 percent stake owned by the private equity fund Permira, which bought into Netafim in 2011 before it roughly doubled in value. Another 6 percent will come from Kibbutz Magal and 13 percent from Kibbutz Hatzerim, which will remain a minority shareholder.

“We were looking for a strategic partner to Netafim that will enable us to continue to develop the company and bring it to the next level,” said Netafim CEO Ran Maidan. “The conditions of the agreement maintain Netafim’s Israeli identity, with a commitment to keep the company’s core activities in Israel for many years.”

Founded in 1965 in Kibbutz Hatzerim, Netafim pioneered the drip irrigation process and has become the leading global supplier of smart irrigation solutions. Netafim’s solutions are helping millions of farmers around the world to significantly increase their yields while saving water and other agricultural inputs. With about $855 million in sales in 2016, it has 17 manufacturing plants and 4,300 employees in over 30 countries.

“The acquisition will give Mexichem access to advanced technology that can be used as a base for ‘smart’ solutions in other industrial fields,” Mexichem CEO Antonio Carrillo Rule said.

  • Mexichem, a global leader in plastic piping and chemicals and petrochemicals, has committed to preserve Netafim’s activity in Israel for 20 years, including its production and R&D facilities.

Israel’s drip irrigation giant sold to Mexican company for $1.5 billion Read More »

You want McMaster out over Iran? That’s fine. Over Israel? Senseless

Is US National Security Advisor H.R McMaster anti Israel? Senior Israeli officials say there is no sign that he is. McMaster, one of them told me, is a general. A military man. His views on the Middle East are not always compatible with Israeli thinking – because he has other priorities, and is in charge of another country’s policy. But accusing him of being anti-Israel is not helpful, nor reasonable. He is a professional, discussions with him are cordial, disagreements with him are always businesslike – and he never gives the impression that ego or grudge are involved.

Nevertheless, McMaster is accused, among other things, of being anti-Israel. “In a volley of attacks from right-wing media, McMaster has been accused of being anti-Israel, having a short temper and collaborating with Obama-era officials”. So much so, that the president felt a need to defend his advisor: “General McMaster and I are working very well together”, Trump wrote. “He is a good man and very pro-Israel. I am grateful for the work he continues to do serving our country”.

That he is short-tempered is a shortcoming but is hardly unique to McMaster. If Trump does not want short-tempered people around him, he is entitled to make such a decision, but clearly that’s not why McMaster is suddenly facing problems. That he collaborates with Obama-era officials is both a plus and a minus. Even in the Obama era some officials were good at their jobs, and might still have something to contribute. That the advisor is not blind to this fact is good – and of course, carries the risk (for those who consider  it a risk) that the views of these wise officials might influence the thinking of the advisor.

So is Israel the problem? It is and it isn’t. Because in fact, there are two types of proofs by which one can  argue that McMaster is not Israel’s best buddy. The first proof concerns Israel: McMaster used the word “occupation” to describe Israel’s presence in the West Bank, he did not want Prime Minister Netanyahu to accompany Trump when the President visited the Western Wall, he would not even say that the Western Wall is in Israel (following him, former White House press secretary Sean Spicer stated that the Western Wall is “clearly in Jerusalem”, but refused to answer the question whether it was a part of Israel).

Taken together, all these pronouncements do not amount to much. Mc Master is solidly in the camp of those still in line with the traditional US policy of not declaring any change to the status quo in the Israeli-Palestinian arena. You could safely assume that he did not want the US embassy to move to Jerusalem – because it is a change that could ignite trouble. You can see that he opposes other implied changes to US policy – mainly because he sees no benefit to the US from making such change. The Arab world will react with fury, the US will gain little.

Is it the ideal position of an American official from Israel’s viewpoint? It is not. Is this anti-Israel? It is not. McMaster might be guilty of conventional thinking about Israel and Palestine. He is not guilty of hostility towards Israel. Not without more proof.

The other issue that is highlighted in attacks against the advisor is more serious. McMaster seems to be cautious on the issue of Iran. He does not support the idea of ditching the Iran nuclear deal. He fired from his staff some of the analysts that were more hawkish on Iran and preferred a more none-confrontational approach to contain its aggressive advance in the Middle East.

Is it the ideal position of an American official from Israel’s viewpoint? It is not. Is this anti-Israel? It is not. McMaster, for whatever reason (there are good arguments in support of keeping the deal – it is not a preposterous position) believes that the deal should be kept. For a horde of reasons, all related to his understanding of the American interest, he seems reluctant to clash with the Iranians. This is not something he does to spite Israel, or annoy it, or put it in danger. He is not anti-Israel – he disagrees with Israel on some issues.

So why is McMaster under attack? That’s a good question, with two possible answers. One – because of personal infighting within the White House. He fired people close to advisor Steven Bannon, the Bannonites are going after him. Two – because of policy differences. McMaster takes a traditional approach to foreign policy and thus takes the bite out of Trump’s foreign policy.  And of course, these two reasons are not mutually exclusive. Often personal grudges and turf battles are fought because of policy disagreements. If a group of advisors and analysts wants Trump to take a more confrontational approach to Iran – and another group want him to remain cautious and prudent – these two groups are likely to have a disagreement that will soon become personal as well as content based.

Israel rarely benefits from such disagreements. It rarely benefits from being identified with the most radical policy ideas. Men and women such as McMaster, the backbone of the military and of the foreign policy establishment, are not always easy to deal with. They can be brash. They can be conventional in their thinking. They often prioritize their reluctance to militarily commit the US to a cause, over the necessities of world leadership.

Still, they should not be made to believe that Israel is an obstacle to everything they stand for. They should not be accused of being anti-Israel only because they refuse to adopt its viewpoint. If anyone want McMaster ousted because of his conventional thinking about policy – that’s find. If anyone thinks he ought to be ousted for harboring negative feelings towards Israel – that’s senseless.

You want McMaster out over Iran? That’s fine. Over Israel? Senseless Read More »