JERUSALEM Israel's Discount Investment Corp (DISI.TA) completed a takeover of sister company Koor Industries KOR.TA in a move aimed at simplifying the conglomerate structure of parent IDB Holding Corp (IDBH.TA), the companies said on Sunday.
Under the deal, Discount is paying Koor shareholders 73.59 shekels per share in cash, valuing the company at 3.489 billion shekels ($1.0 billion).
Discount already holds 67 percent of Koor, which owns 40 percent of Adama, the world's largest provider of generic crop protection products. China National Chemical Corp (ChemChina) owns the rest of Adama, formerly known as MA Industries.
One the merger is complete, Koor will become a private company controlled by Discount.
IDB, one of Israel's largest conglomerates that is structured as a pyramid, has fallen on hard times and was sold. With the merger of Discount - 74 percent owned by IDB Holding - and Koor, IDB is moving to a two-layer company..
Israel recently passed a law aimed at breaking up the country's largest conglomerates and prevent the growth of new behemoths.
($1 = 3.4878 Israeli shekels)
(Reporting by Steven Scheer)