Israel Chemicals (TASE: ICL: NYSE: ICL) is offering the Israeli government a deal: billions of shekels investment in the Negev, in exchange for cancellation of the Sheshinski 2 recommendations on raising the state's take from exploitation of natural resources.
ICL officially revealed today that, following government decisions on encouraging investment and employment in the Negev, particularly in the Eastern Negev, the company has been maintaining a constant dialogue in recent months with relevant people in the government and in the Knesset. ICL presents a plan for investing over NIS 5 billion in the coming years in various projects in the Eastern Negev.
In addition, ICL has presented full and detailed information on the impact of government decisions about the company (exclusion from the Law for the Encouragement of Capital Investment, imposition of the cost of financing protection for the hotels beside the Dead Sea, the Sheshinski 2 committee recommendations on taxation) on the business environment with which it has to contend, which it says do not allow it to continue investing in Israel.
"ICL has found in the government ministries an attentive ear and the understanding that its huge investments in the Negev will generate growth and development, and will boost employment and commerce, to the benefit of the residents, the workers, the state, and the company. ICL hopes that the dialogue will lead to the right arrangements being found on the whole array of issues, allowing it to resume investment in Israel after such investment was halted completely following decisions by the board of directors in March and August 2014," ICL's statement says.
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2015
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