Delek Israel proposes merger with retailer Shufersal

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A man pushes a shopping cart outside Shufersal, Israel's largest supermarket chain, in the West Bank Jewish settlement of Mishor Adumim near Jerusalem May 5, 2013. REUTERS/Ammar Awad/Files Photo

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JERUSALEM, April 6 (Reuters) - Delek Israel said on Wednesday it has proposed to merge with the country's largest supermarket chain, Shufersal (SAE.TA) and buy additional shares that could give it close to 20% ownership of Shufersal.

Delek Israel is a leading operator of gas stations and convenience stores.

In a regulatory filing to the Tel Aviv Stock Exchange by Delek Israel shareholder Lahav (LAHAV.TA) and Shufersal, Delek Israel shareholders were offering to merge 100% of their company in return for an approximate 10% stake in Shufersal.

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Delek Israel's shareholders would then pay 100 million shekels ($31 million) for options that could bring their stake to in Shufersal to 19.99%.

The proposed deal would require a host of approvals, including from regulators, the tax authority and stock exchange.

($1 = 3.2185 shekels)

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Reporting by Ari Rabinovitch Editing by Steven Scheer

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