Antitrust Committee Recommends Blocking Shapir's Acquisition of Ashdod Oil Refinery

Israel's Antitrust Committee has advised against approving Shapir Group's purchase of the Ashdod Oil Refinery, citing concerns over excessive concentration of economic power. The committee's majority, including Chair Michal Cohen and Finance Ministry Director General Israel Malachi, warned that granting Shapir control over this strategic asset would place the company among Israel's most dominant economic players, potentially giving it disproportionate leverage over government policy. The Ashdod refinery supplies about 40% of Israel's fuels and cooking gas and is a key logistical hub, a role expected to grow as the Haifa refinery is slated for closure, possibly making Ashdod the country's sole refining facility.

The committee expressed fears that Shapir's expanded control, combined with its existing influence in Jerusalem and Gush Dan light rail projects, toll roads, and quarrying, could lead to regulatory dependency where the government routinely relies on this concentrated entity. They also noted Shapir's active lobbying efforts, which could compound its market dominance. In contrast, a dissenting opinion from Professor Avi Shamhon, Chair of the National Economic Council, argued that the refinery urgently needs about one billion shekels in investments to replace maritime connections and prepare for Haifa's closure. He warned that without a committed investor like Shapir, the refinery risks collapse, harming consumers. The majority, however, maintained that the refinery is financially stable and capable of operating independently without a controlling shareholder.

The committee's recommendation will be submitted to the Government Companies Authority for final decision. This ruling highlights the ongoing tension between preventing market concentration and ensuring critical infrastructure receives necessary investment.