| Zim invests $44m in China joint venture - The joint venture is for the construction and operation of 18 freight railway terminals
Israel Corp. (TASE: ILCO) has announced that Zim Integrated
Shipping Services Ltd., which it owns, has signed a joint
venture agreement in China, in which it will invest $44
million.
This comes one day after the Israel Corp. announced that
it was negotiating the purchase of 50 percent of a European
oil company for $132 million.
The Chinese contract is for the construction and operation
of 18 freight railway terminals. Zim's stake in the venture
stands at 8 percent, in exchange for the $44-million investment.
Under the agreement, Zim will make the investment in three
stages, up to the end of 2008. The other shareholders in
the venture are strategic partners, who are active in the
manufacture of containers, infrastructure, shipping, and
railways. The main partner is a Chinese government freight-haulage
company.
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