Business brief
Corporate Disputes and Capital Realignment
Leviathan partners clash over a $6.7B supply pact, Fidelity trims defense exposure, and commercial war compensation reaches $12.7B.
Business
NewMed walked away from a $6.7B domestic contract as Dalia sued — positioning Leviathan to pivot scarce gas toward lucrative export tariffs.
BackgroundDalia contracted offshore Leviathan partners to supply natural gas for Israel's privatized Eshkol electricity plant near Ashdod. Long-term domestic energy agreements require strict closing windows alongside formal antitrust clearances from Israel's Competition Authority before binding deliveries commence.
- Israel's Competition Authority cleared the supply transaction on October 6, but Leviathan partners argue the green light came days after formal financing windows expired.
- NewMed contends voiding the domestic agreement frees up substantial gas volumes for export deals to Egypt and Jordan at significantly higher regional market prices.
- Dalia launched emergency court proceedings to preserve the 20-year pact, warning that unilateral termination threatens private power generation economics and could raise consumer electricity bills.
Business
The state absorbed $12.7B in business interruption claims across 930,000 filings — keeping border enterprises afloat while pushing state fiscal deficits to record highs.
BackgroundThe state compensation fund acts as an emergency insurer, reimbursing businesses for direct rocket damage and lost revenue resulting from military conflicts. Extended border evacuations and rocket alerts shuttered thousands of industrial, agricultural, and hospitality facilities throughout northern and southern Israel.
- Northern commercial enterprises submitted more than 63,600 business interruption claims, receiving an average indemnity payout of NIS 64,300 per application.
- Total relief disbursements reached NIS 39 billion, marking the single largest corporate compensation cycle in the state's economic history.
- Sustained compensation outlays continue to expand the state fiscal deficit, increasing pressure on the Ministry of Finance to curb non-essential spending.
Business
Fidelity locked in huge gains by selling NIS 1.3B of Next Vision — ending its dominant anchor role and resetting multiples across Tel Aviv defense stocks.
BackgroundNext Vision designs specialized micro-gimbal optical sensors installed widely on battlefield loitering munitions and tactical reconnaissance drones. Soaring global defense budgets pushed the company's market valuation to record highs, drawing major overseas institutional allocators onto the Tel Aviv trading floor.
- The institutional placement cleared at NIS 227 per share, reducing Fidelity's total equity position in the sensor manufacturer from 9.5% down to approximately 4%.
- Foreign institutional buyers absorbed roughly NIS 1 billion of the distributed shares, demonstrating persistent international appetite for combat-proven defense hardware despite steep valuation multiples.
- The aggressive discount triggered heavy spillover selling across the Tel Aviv Defense Index, pulling down valuations across local aerospace and unmanned systems subcontractors.
Business
Kamada doubled its local biosimilar lineup with Stelara and Clexane alternatives — turning public health budget pressures into a predictable specialty distribution franchise.
BackgroundBiosimilars are near-identical, lower-cost generic copies of complex biologic medicines produced from living cells rather than synthesized chemicals. Kamada leverages exclusive distribution pacts with international drugmakers to register and commercialize advanced specialty biologics through Israeli public health funds.
- The commercial rollout introduces generic equivalents to Stelara and Clexane, doubling Kamada's commercial biosimilar portfolio to four approved hospital-tier injectables.
- Corporate leadership projects regional biosimilar sales will generate $10 million in revenue by 2028, before scaling to $25 million annually by 2030.
- Local health maintenance organizations are adopting biosimilars rapidly to curb ballooning public spending on chronic autoimmune therapies and post-surgical inpatient care.
Business
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