Israeli government to end cement monopoly
The Israeli government is set to end the country's cement monopoly. Antitrust Commissioner David Gilo has outlined a plan to force Nesher to sell its Har Tov plant, which produces around 30% (1 million tonnes) of Israel's cement/year.
If Nesher fails to sell the plant, Gilo said, the firm will have to drop the discounts it provides its largest customers.
The Cost of Living cabinet has approved plans to enhance competition in the cement market, which included a condition for Nesher to lower its prices by 2%.
The decision taken on Monday 28 July 2014 will shorten the timetable for plans to introduce competition, which were not expected to be fully implemented until 2020.
A commission on the cement market in Israel found that breaking the monopoly could save Israel’s economy hundreds of millions of shekels each year, and lower the cost of living.
As a central material in housing, schools and other infrastructure, the repercussions of cement’s price falling would be significant, it argued.
