A consortium consisting of Adani Ports and Special Economic Zone Ltd (APSEZ) and Gadot Group has won the tender to privatise Haifa Port, the second largest port in Israel, the company said in indices filing on July 15.

Through the bid, the Adani-Gadot consortium has purchased the rights to buy 100% shares of Haifa Port Company Ltd. The concession time of the Port of Haifa stays up to 2054.

APSEZ will have about 70% shares in the consortium while Gadot owns 30%. The deal was done at $1.18 billion. Haifa Port is of great value since it handles nearly half of Israel’s cargo ships.

Though the port will face tough competition from a new port in Haifa that was made last year and is operated by Shanghai International Port Group (SIPG). Israel relies on its port for nearly all its imports and exports. It is a profitable deal in the eyes of many business experts.

This will also deepen the relationship between Israel and India. Israel has been trying to become a major partner of India in terms of a geopolitical ally as well as a business partner.