Israeli energy companies Delek Drilling and Avner Oil completed merger

Delek drilling rigThe Israeli energy companies Delek Drilling and Avner Oil completed the merger process. The new combined entity will keep the name Delek Drilling and will have a market value of 4.4 billion USD. The companies have said the aim of the merger aims to simplifying the holding structure, as the both units are part from conglomerate Delek Group. Via Delek Drilling and Avner Oil, Delek Group holds stakes in Israel’s offshore natural gas fields Tamar and Leviathan. The merger decision will simplify the process of operations and will reduce the management costs, which will make the operations more effective.

“Closing date of the merger of partnerships between Delek Drilling and Avner Oil is Wednesday, May 17, and trading of the shares of the new company is expected to begin on May 21”, said the two companies in a joint statement.

Delek Group is an Israeli conglomerate and one of Israel’s largest companies. It is involved in the energy and infrastructure, with investments in upstream and downstream energy, water desalination and power plants. Delek Group’ subsidiaries are also involved in insurance and financial services.