Spanish MAT Holding Explores Acquisition of Israeli Drip Irrigation Leader Netafim Amid US Regulatory Hurdles
Negotiations for the sale of Israeli drip irrigation manufacturer Netafim to Chinese billionaire Oyoo Wang have stalled due to regulatory challenges in the United States, prompting Spanish water and irrigation group MAT Holding to consider acquiring the company. MAT Holding, which has a history of investments in Israel including acquisitions of Dorot Control Valves and ARI, is familiar with Netafim’s products as its distributor in Spain. However, MAT is significantly smaller than Netafim and is expected to partner with an Israeli or foreign investment fund to complete the purchase. Another possibility under consideration is that Kibbutz Hatzerim, which holds 20% of Netafim, might increase its stake.
Netafim was put up for sale by its controlling shareholder Orbia, formerly Mexichem, in October 2025, with an asking price of approximately $1.4 billion. Initial talks with Israeli investment fund Fortissimo, which offered $800 million plus assuming $400 million in debt, failed due to valuation gaps. Subsequently, Chinese billionaire Wang, owner of private irrigation company Dayu and partner in investment fund HOPU, entered negotiations to buy Netafim at the $1.4 billion valuation. Wang planned to acquire Netafim privately and merge it with Dayu. He even visited Israel and met with Netafim executives at its kibbutzim factories.
The main obstacle to the deal with Wang is US regulatory approval, as Netafim generates about $250 million annually in the US, roughly a quarter of its revenue. Given the tense US-China relations and tightened scrutiny of Chinese investments in companies with American operations, approval is expected to be difficult. One proposed solution was to exclude Netafim’s US business from the sale, reducing the purchase price accordingly, but this complicates the deal structure and reduces its attractiveness.
MAT Holding, based in Barcelona and founded in 1935, operates in water solutions, irrigation, and crop protection, employing over 1,200 people with commercial activities in more than 140 countries. The family-owned company has steadily expanded its water sector, which now drives its growth. MAT’s recent revenues reached 429 million euros in 2025, up 6% from the previous year, with 70% of income generated outside Spain. The company invests heavily in research and development and operates production and industrial centers in Spain, Israel, the US, China, and India. MAT’s entry into the Netafim acquisition process reflects its strategic focus on expanding water technology amid growing global demand due to climate change and water scarcity.
