June 1, 2015

Will US Investors Bail Out Israel’s Second Largest Supermarket Chain?

Tel Aviv - The Mega supermarket chain owned by the Alon Group is in big trouble with rumors circulating for weeks that the chain may eventually close. Then there was word that one of Israel’s moguls and the owner of a chain bearing his name, Rami Levy, was considering taking over the chain.  According to the prestigious Globes Magazine, Blackstone Group, one of the world’s largest private equity firms, is in talks to buy Mega, Israel's second largest supermarket chain with 171 stores. If true, it would be the first time that a foreign entity will be involved in the ownership of Israel’s largest supermarket chains. Industry sources say that Mega has not done well in the increasingly competitive environment. Its sales fell 9.1% in 2014. Gross profits last year fell by 11.3%.