Chinese billionaire Haoyu Wang is in talks to buy control of Israel’s Netafim, the world’s largest precision irrigation company, from Mexico’s Orbia. The deal, if concluded, would mark a major Chinese acquisition in Israeli agritech — coming at a time when China has banned new investments in Israel.
The Deal#
Orbia, which holds an 80% stake in Netafim, has been seeking to sell its holdings to reduce leverage. After negotiations with Israeli private equity fund Fortissimo (managed by Yuval Cohen) fell through at a valuation of $1–1.1 billion, Orbia is now examining the sale to Wang as part of a group of investors. The final price tag may be higher than what Fortissimo had offered. Orbia originally acquired Netafim at a company valuation of $1.5 billion from the Permira fund.
The remaining 20% of Netafim is held by members of Kibbutz Hatzerim near Beersheva, which founded the company.
The Buyer#
Haoyu Wang currently lives in Maryland, US, and holds a master’s degree in business administration from Johns Hopkins University. He has served as chairman of Dayu Conserving Water Group (大禹节水集团) for the past nine years — a company founded by his father that specializes in drip micro-irrigation systems, much like Netafim itself.
Dayu describes itself as a “leading Chinese industrial manufacturer with large-scale operations.” The company has plants in several centers across China, including Tianjin. Founded in 2000, Dayu’s shares are traded on the Chinese stock exchange at a market cap of approximately 5 billion yuan ($710 million). The company had previously expressed interest in establishing a representative office in Israel to scout irrigation technologies.
Wang reportedly visited Israel in recent weeks as part of his due diligence into acquiring Netafim.
Netafim: A Pioneer in Precision Irrigation#
Netafim was founded in 1965 on Kibbutz Hatzerim and is widely credited with inventing modern drip irrigation — now called “precision irrigation.” The company is active in 33 countries, operates 19 factories and two recycling plants, and employs approximately 4,500 people worldwide.
Despite intensifying competition from companies like Rivulis, India’s Jain Irrigation, and numerous Chinese manufacturers, the global irrigation market remains vast: only a small percentage of farmers worldwide use drip irrigation, with most agriculture still relying on more basic technologies.
Broader Context#
The potential acquisition carries an ironic dimension. China recently banned all new investment in Israel, classifying it as high-risk. However, Wang’s US residence and personal wealth may place this deal outside the scope of Chinese government investment restrictions.
The deal also highlights the continued strategic interest in Israel’s agritech sector — a field where the country remains a world leader despite broader geopolitical tensions.
Source: Globes
