Israel Approves Major Mobile Carrier Sale to Delek Group

Israel's Minister of Communications, Shlomo Karai, has given regulatory approval for the transfer of controlling shares in the mobile carrier HOT Mobile. The deal, valued at approximately 1.88 billion shekels (around $510 million), will see the company move from Patrick Drahi's Altice Group to a consortium led by Delek Retail and Keyone. This decision follows a six-month review by the Ministry of Communications, which assessed the financial stability of the acquiring group, the deal's impact on market competition, and commitments to infrastructure investment.

The acquisition process began about six months ago when Delek Israel, controlled by Avi Levy, Urie Manzur, and Yitzhak Tshuva, signed a memorandum of understanding. Altice had previously rejected a higher offer of 2.3 billion shekels from Cellcom, opting for Delek's lower bid to ensure a swift closure and avoid potential regulatory hurdles associated with a merger between Cellcom and HOT Mobile due to concentration concerns. Drahi also needed to settle debts in Europe.

With regulatory clearance secured, Delek Retail is now focusing on its strategic plan. This involves integrating HOT Mobile's subscriber base of approximately 2 million users with Delek's extensive retail network and geographical presence. The company intends to offer communication services and devices at its points of sale, enhance its customer loyalty program, and introduce cross-promotional offers.

The entry of Delek Retail as a new controlling entity in the mobile market is expected to intensify competition with established operators like Cellcom and Partner. Furthermore, the Ministry of Communications' approval mandates that the acquiring group continue to invest in and develop advanced communication infrastructure in the coming years.