"The merger with Carmel Olefins will give Oil Refineries a competitive edge."
Bank Hapoalim has cut its target price for Oil Refineries Ltd. (TASE:ORL) to NIS 2.89 from NIS 3.37, although the bank reiterated its "Outperform" recommendation. Oil Refineries opened at NIS 2.61 today.
The move came even though Oil Refineries today announced the completion of its takeover of Carmel Olefins Ltd. after buying out its partner in the company, Israel Petrochemical Enterprises Ltd. (TASE:PTCH), which received 20% of Oil Refineries in exchange.
Bank Hapoalim's Research Department said, "The merger of Carmel Olefins will mainly contribute to Oil Refineries' petrochemicals business, which is synergetic to its refining operations, giving it a competitive edge."
Published by Globes [online], Israel business news - www.globes-online.com - on June 25, 2008
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