Jerusalem: Indian agriculture conglomerate Jain Irrigation Systems is buying 50% of Israel’s Na’an Dan Irrigation at a company valuation of about $35 million, a media report said on 25 May.
The two firms will be entering a memorandum of understanding on the transaction next week, daily Ha’aretz said. The Israeli firm chose the Indian company despite having a better offer from a local irrigation company, Netafim, the report said.
Jain irrigation is likely to transfer the production lines to India resulting in layoffs, it said. Sources told the daily that Na’an Dan rejected Netafim’s offer because it demanded a controlling share in the company, raising concerns that it would take steps to integrate the management activities of the two companies, sending the Na’an Dan’s management home.
Naan Dan recently announced a $2 million deal relating to sell of technology and equipment to a tea plantation in India. It is not known whether the deal is connected with the Jain takeover.