Keter Plastics, controlled by Sami Sagol, is in advanced talks with the Kidron group regarding setting up a joint venture to operate a plastics factory owned by Technoplast, the country's largest plastic injection molder, sector sources said Monday.
The sources added that Keter had also expressed interest in buying the plastic injection plant, which would complement its own product line, but that the sides had not reached an agreement on such a deal.
Kidron operates in the industrial materials field and in international trading of raw materials. The group maintains manufacturing plants for fire-extinguishing powders and foams in Rosh Pina and France. Kidron recently announced an agreement to merge its plastics subsidiary, Kidron Plastics, with Technoplast. The deal is subject to approval by the Antitrust Authority.
According to the source, the arrangement on the plastic injection plant would grant Keter and Kidron the responsibility for managing and operating the plant, but would not involve shares in Technoplast, which is traded on the both the Tel Aviv and London stock exchanges.
The cooperation between Keter and Kidron is conditional on Kidron's completing its merger proposal with Technoplast. If all obstacles are overcome, the deal could be closed before the end of the year.