Join the most important conference in the Jewish world
Knesset approves 1st reading of economic-concentration bill
ByNADAV SHEMER
July 18, 2012 06:35
Law would restrict cross-ownership of financial and non-financial corporations, limit pyramid structures of new companies to 2 public levels.
Businesspeople in a meeting

Workers in an office 300. (photo credit:Thinkstock)

The Knesset approved the first reading of a government- proposed bill on economic concentration late Tuesday. It would restrict cross-ownership of financial and non-financial corporations and limit the pyramid structures of new companies to two public levels.

The bill is based on the recommendations of the Committee on Strengthening Market Competitiveness, which submitted its final report in February.



Be the first to know - Join our Facebook page.


It proposes enforcing separation of financial and non-financial holdings by prohibiting control of financial institutions by large non-financial corporations.

It defines a large financial corporation as one with at least NIS 40 billion in assets under management and a large non-financial corporation as one with at least NIS 6b. in Israeli sales.

Corporations will have six years to comply with the new regulations if and when they are implemented, not four years as the report proposed.

Some opposition MKs rejected the bill for not going far enough, including Meretz chairwoman Zehava Gal-On, who labeled it a “diet” version of the committee’s recommendations.

Cross-ownership of financial and non-financial institutions should be banned regardless of size, she said, adding that the six-year limitation proposed by the government serves precisely those who are responsible for over-concentration.
Relevant to your professional network? Please share on Linkedin

Tags:
  • Knesset
  • business
  • government
  • Prev Article
    Daily print version of ‘Ma’ariv’ to disappear
    Illustrative photo
    money
    Your investments: Common mistakes retirees make
    Next Article
    Share this article via
    from around the web
    Related Content
    The Teva Pharmaceutical Industries
    April 30, 2015
    Teva doubles down on Mylan, despite rejection

    By GLOBES, NIV ELIS

    Top Stories
    Israel Weather
    • 5 - 18
      Beer Sheva
      10 - 18
      Tel Aviv - Yafo
    • 5 - 15
      Jerusalem
      8 - 17
      Haifa
    • 9 - 23
      Elat
      7 - 21
      Tiberias