Zohar Levi Boosts Stake in Ashdod Refinery Amid Control Battle

Zohar Levi and his company Summit have increased their holdings in the Ashdod Oil Refinery (BZA), raising questions about Levi's intentions following obstacles faced by Shapir Group in its bid for control. Levi, through Summit, acquired most of the 4.9% stake sold by Paz on Thursday for approximately NIS 75 million, bringing Summit's total ownership to 16.9%. The refinery's stock surged 16% over two days as uncertainty surrounding Paz's shares dissipated after Shapir Engineering failed to exercise its option to purchase them.

Shapir Engineering, controlled by the Shapira brothers, currently holds 10% of BZA shares, acquired in June 2023 when BZA was split from Paz. Shapir had an option to increase its stake to 65% by 2028, which would involve a tender offer. However, the Concentration Committee, comprising the Competition Authority, Treasury, and Prime Minister's Office representative, recommended against granting Shapir control due to its massive scale, advising the Government Companies Authority to deny the permit. The Authority also requires Shapir to complete the sale of its natural gas activity.

Levi's increased stake, moving beyond a purely financial investment to potentially strategic ambitions, has caused concern for the Shapira brothers. Summit had previously invested NIS 665 million in Paz shares with the aim of gaining control, eventually realizing a profit of NIS 1.1 billion in July 2025 from shares now valued at NIS 1.6 billion. Summit retained a 12.9% stake in BZA, which it has now increased, potentially enabling it to ally with other shareholders to block Shapir's control option.

Furthermore, Ofer Yanai's Nofar Energy is reportedly exploring moves for control of the refinery, though a Nofar spokesperson denied this. BZA's stock rose a total of 17% on Friday, reaching a market value of NIS 1.8 billion. Thursday saw a significant trading volume of NIS 200 million, suggesting other parties may also be acquiring shares to support Levi or to challenge Shapir independently.