The Chinese government’s Bright Food Group signed an agreement to acquire control of Tnuva. The sale is being made at a company value of 8.6 billion NIS. Bright Food will acquire 56% of the company on which it will not be required to pay tax.

The agreement compels Bright Food to keep Tnuva in the control loop and Israel will maintain a majority on the board of directors. The CEO will remain Israeli and a representative of the Chinese company will serve as director.

Any side that pulls out of the agreement before it is completed will be required to pay a penalty of 140 million NIS to the other party.

Some analysts feel that in addition to bringing China on board, which is becoming a large economic partner and investor in Israel, it will benefit Israel in other ways as well. Some point out that now that China has significant commercial interests in Israel, it will be more likely to act to maintain stability in the region. Others feel the sale is simply a sign of the current unwanted times and the once local pride, Tnuva, has become nothing more than another Chinese acquisition, signaling the pride that once existed in the country is a thing of the past and today, it is only about money.

(YWN – Israel Desk, Jerusalem)