The Israel Corporation

The Israel Corporation, also known as Israel Corp, is a major Israeli holding company whose investment portfolio has historically been concentrated in basic industries and infrastructure-oriented businesses. It was established in 1968 by the Government of Israel together with businessman Shaul Eisenberg, during a period when the Israeli government was seeking foreign capital and strategic investment for industrial development. The company was created under an investment-attraction policy associated with Finance Minister Pinchas Sapir, including incentives intended to encourage long-term private participation in the Israeli economy. The corporation is not primarily a consumer-facing product brand. Instead, it operates through significant stakes in industrial and transportation companies. Its major areas of exposure have included fertilizers and specialty chemicals, energy and petroleum refining, shipping, semiconductors, and other industrial activities. Companies identified as major holdings have included Israel Chemicals, Oil Refineries Ltd, Tower Semiconductor, Kenon Holdings, and Zim Integrated Shipping Services. Through these investments, Israel Corporation has been connected to agricultural inputs, chemical manufacturing, energy infrastructure, global maritime transport, and technology manufacturing. The company developed an international operating profile through its portfolio companies. Reference material describes approximately half of its manufacturing activity and roughly 70 percent of consolidated revenue as deriving from global operations, although the precise period for those figures is not specified. This international exposure distinguishes the corporation from a purely domestic investment vehicle, even though its ownership history, stock-market presence, and political-economic significance are closely associated with Israel. Israel Corporation offered shares to the public in several stages, in 1969, 1970, 1974, and 1982, and became listed on the Tel Aviv Stock Exchange in 1982. It has been described as a constituent of the exchange's TA-35 index, while several important portfolio companies, including Israel Chemicals and Oil Refineries Ltd, have also been included in that leading-share index at various times. Control changed after Shaul Eisenberg died in 1998, when his family sold control to the Ofer family. By 2007, the Ofer Brothers Group held a majority interest according to the cited reference material, while Bank Leumi held a substantial minority stake and the remaining shares were publicly held. The ownership structure illustrates the corporation's role as a large, family-influenced investment group with public-market participation. The company's history has also been marked by governance controversy. In 1975, Michael Tzur, who had served as the corporation's director general, was sentenced to 15 years in prison after convictions involving embezzlement, theft, fraud, and bribery; he was released in 1981. Separately, the corporation became a prominent subject of criticism concerning the relationship between large business groups, government decision-making, and the Israeli media. The documentary The Shakshuka System examined allegations of political influence, revolving-door relationships between the public and private sectors, and the company's role in the Bazan refinery transaction. The film alleged that the state paid an excessively high price for the company's interest in the refinery despite arrangements under which the holding was to return to the state without compensation. The corporation was also alleged to have opposed or obstructed television distribution of the film; it was ultimately broadcast on Israel's Channel One. Israel Corporation's significance therefore rests less on a single branded product than on the scale and strategic character of its holdings. It has functioned as a vehicle for investment in industries considered important to Israel's industrial base and international comme…

The Israel Corporation was founded in 1968 as part of Israel's effort to attract strategic foreign investment and build industrial capacity. Its creation involved the Government of Israel and Shaul Eisenberg, a businessman regarded in the reference material as one of the country's early major strategic foreign investors. The initiative was associated with Finance Minister Pinchas Sapir and changes to Israel's investment-incentive framework. Those arrangements provided substantial tax and other benefits to the company's owners, including a 30-year tax exemption described in the source material. The corporation began broadening its ownership base soon after formation. Shares were offered to the public in 1969, 1970, 1974, and 1982, and the company was listed on the Tel Aviv Stock Exchange in 1982. Its public listing coexisted with concentrated strategic ownership and allowed the corporation to operate as a publicly traded investment group while maintaining strong links to major private shareholders. A major early governance crisis involved Michael Tzur, the company's director general. In 1975 he was convicted on 18 counts involving embezzlement, theft, fraud, and bribery and received a 15-year prison sentence. He was released in 1981. This episode became one of the most serious scandals associated with the corporation's corporate history. Over time, Israel Corporation developed a portfolio centered on sectors regarded as strategically important to the Israeli economy. These included fertilizers and specialty chemicals, petroleum refining and energy, shipping, transportation, and semiconductor manufacturing. The company's major holdings have included Israel Chemicals, Oil Refineries Ltd, Tower Semiconductor, Kenon Holdings, and Zim Integrated Shipping Services. The portfolio gave the group both domestic economic importance and international reach, with the cited material stating that about 50 percent of manufacturing activity and about 70 percent of consolidated revenue came from global operations. The source does not specify the reporting period for those figures. After Shaul Eisenberg died in 1998, his family sold control of the company to the Ofer family. The Ofer Brothers Group subsequently became the dominant shareholder. A 2007 ownership description attributed 55 percent of the equity to the Ofer Brothers Group, 18 percent to Bank Leumi, and the balance to public shareholders. This structure positioned the corporation as a family-influenced listed holding company rather than a state-owned enterprise, despite its origins in a government-led investment program. Israel Corporation also became a subject of wider debate about concentrated economic power in Israel. The documentary The Shakshuka System presented allegations that the company benefited from close relationships with political and economic decision-makers, a revolving door between the public sector and private business, and influence over local media. One focus was the Bazan sale, concerning the company's interest in Israel's largest oil refinery. The film argued that the state's purchase price was excessive and emphasized an alleged agreement under which the holding would have returned to the state without compensation. The corporation was also alleged to have tried to prevent the film from being broadcast on commercial television. The film eventually aired on Channel One. The corporation has been described as Israel's largest holding company and as a constituent of the TA-35 index. Its strategic holdings, including Israel Chemicals and Oil Refineries Ltd, have also been identified as TA-35 constituents. In this role, Israel Corporation represents a concentrated investment platform spanning industrial production, commodities, infrastructure, shipping, and technology. The available reference material does not provide sufficient current information to describe its latest management, precise ownership, portfolio composition, or present financial performance.

1. 2007Reported concentrated ownership structure

   The Ofer Brothers Group was reported to hold 55 percent of the equity, Bank Leumi 18 percent, with the remainder publicly held.

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2. 1998Ofer family acquires control

   After Shaul Eisenberg's death, his family sold control of the company to the Ofer family.

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3. 1982Listed on the Tel Aviv Stock Exchange

   Following earlier public offerings, Israel Corporation became listed on the Tel Aviv Stock Exchange.

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4. 1975Director general convicted

   Director general Michael Tzur was convicted on multiple financial and corruption-related charges and sentenced to 15 years in prison.

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5. 1969First public share offering

   The company began offering shares to the public, starting a process of expanding public ownership.

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6. 1968Israel Corporation founded

   The Government of Israel and Shaul Eisenberg established the corporation as part of a policy to attract strategic foreign investment and support industrial development.

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A large, strategically oriented Israeli holding company focused on industrial, infrastructure, resource, energy, shipping, and technology assets, with substantial international exposure through its portfolio companies.

• Fertilizers and specialty chemicalsIndustrial holdings

  Israel Corporation's portfolio has included major exposure to fertilizer and specialty-chemical manufacturing, principally through Israel Chemicals. These businesses connect the holding company to agricultural inputs, mineral-based products, industrial chemicals, and international commodity markets. The activity is conducted through portfolio companies rather than sold as a single consumer brand under the Israel Corporation name.

• Energy and petroleum refiningEnergy holdings

  Energy has been one of the corporation's core investment areas, including interests associated with Oil Refineries Ltd and the Bazan refinery. This exposure has placed Israel Corporation in debates about refinery ownership, energy infrastructure, state assets, and the relationship between private investment and public policy in Israel.

• Shipping and transportationTransportation holdings

  The corporation has held interests in shipping and transportation businesses, including Zim Integrated Shipping Services. This part of the portfolio gives the group exposure to global maritime logistics and international trade rather than to a domestic-only transport market.

• Semiconductor manufacturingTechnology holdings

  Tower Semiconductor has been identified as one of Israel Corporation's major holdings. Through this type of investment, the group has participated in Israel's technology and semiconductor manufacturing ecosystem, complementing its larger industrial and infrastructure interests.

• 1998Transfer control to the Ofer familyM&A

  Shaul Eisenberg died, prompting his family to reconsider control of the holding company.

  What changed. The Eisenberg family sold control of Israel Corporation to the Ofer family.

  Aftermath. The Ofer family and the Ofer Brothers Group became the dominant owners of the listed holding company.

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• 1982Complete transition to public listingStrategy

  The corporation had conducted public share offerings in earlier years while remaining strategically controlled.

  What changed. Israel Corporation listed its shares on the Tel Aviv Stock Exchange.

  Aftermath. The company combined public-market access with concentrated ownership and became associated with Israel's leading-share index.

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• 1968Create a strategic industrial holding companyStrategy

  Israel was seeking foreign capital and industrial development, and the government had introduced investment incentives intended to attract strategic investors.

  What changed. The Government of Israel and Shaul Eisenberg established Israel Corporation as an investment vehicle for major industrial interests.

  Aftermath. The company developed into a large listed holding group with interests in chemicals, energy, shipping, transportation, and technology.

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• 1975Michael Tzur embezzlement and bribery convictionControversy

  Michael Tzur, the corporation's director general, was convicted on 18 counts involving embezzlement, theft, fraud, and bribery. He received a 15-year sentence and was released in 1981.

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• Criticism surrounding The Shakshuka System and the Bazan transactionControversy

  The documentary The Shakshuka System criticized alleged political and media influence surrounding Israel Corporation and examined the sale of the company's Bazan interest to the state. The film presented allegations that the purchase price was excessive and that the company had benefited from close public-sector relationships. The corporation was also alleged to have sought to prevent commercial television broadcasts of the film.

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• 1998Control of Israel Corporation passes to the Ofer family

  Following the death of Shaul Eisenberg, his family sold control of the corporation to the Ofer family.

  M&ALeadership change
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1. Israel Corporation
2. The Israel Corporation official website