Chinese billionaire in talks to buy Israeli irrigation giant Netafim, valued at $1.5 billion

Chinese Billionaire Eyes Control of Netafim

A young Chinese billionaire named Haoyu Wang is deep in negotiations to take over Israel's renowned irrigation company Netafim from its current majority owner, Mexico's Orbia group.

Wang, who controls the Chinese irrigation firm Dayu, has teamed up with the Hopu investment fund to pursue this acquisition, with talks centering on a company valuation around $1.4 billion. This comes as Netafim carries about $400 million in bank debt, which the buyer would assume. Orbia, which bought an 80% stake in Netafim back in 2017 for $1.5 billion, has been actively seeking to offload its holdings to ease its own financial pressures, including hefty overall debt.

Recent reports highlight Wang's recent visit to Israel, where he toured Netafim's facilities in Hatzerim and Magal, and held meetings with the company's leadership. His interest stems from a long-standing admiration for Israeli irrigation technology, positioning this deal as more than just a business transaction.

Netafim's Legacy as Global Irrigation Pioneer

Netafim stands as the world's largest producer of irrigation products, particularly known for pioneering drip irrigation systems that revolutionize water conservation in agriculture.

Founded by Kibbutz Hatzerim near Beersheva, the company holds a dominant over-30% share of the global drip irrigation market and generated more than $1 billion in revenues as far back as 2019. Its innovations have powered massive projects worldwide, from community irrigation in India serving tens of thousands of farmers to large-scale developments in Ethiopia and Rwanda.

Today, Netafim is led by President and CEO Gaby Miodownik, and while Orbia owns 80%, the founding Kibbutz Hatzerim retains a 20% minority stake. The kibbutz has expressed a preference for keeping ownership in Israeli hands, but its veto rights only apply to buyers from hostile nations—China does not qualify. In 2025, Netafim boosted its performance, achieving an EBITDA of $135 million, surpassing expectations and making it an even more attractive target.

Over the years, the company has expanded through acquisitions like the Dutch greenhouse provider Gakon in 2020, solidifying its role in turnkey agrotech solutions.

Negotiations Heat Up After Failed Israeli Bid

Earlier attempts to sell Netafim to Israeli private equity firm Fortissimo, led by Yuval Cohen, fell apart amid disagreements over valuation, debt levels, and cash flow metrics.

Fortissimo had aimed for a $1 to $1.1 billion price tag, but Orbia, advised by investment bank Evercore, held firm near $1.2 billion enterprise value. With Fortissimo out, Wang's higher offer has emerged as the frontrunner, though Orbia might retain a 10-20% stake post-deal, giving the buyer an option to buy it later.

His father aspired to be a global leader in irrigation, and his goal now is to fulfill that wish by acquiring Netafim, a source close to the company remarked, underscoring Wang's personal drive and respect for Israel's technological edge in the field.

Wang plans to fund the purchase personally rather than through Dayu, which has a market cap of about $710 million and has eyed Israeli tech before. A future merger between Netafim and Dayu could create a powerhouse in irrigation, but it raises questions for Israel's agrotech sector about foreign ownership of a strategic asset. Other interested parties, like European and U.S. funds, have shown lukewarm interest so far.

Implications for Israel and Global Agrotech

This potential sale represents a strategic turning point for Israel's high-tech agriculture industry, as control of a global leader shifts from Western to Chinese hands.

While Kibbutz Hatzerim cannot block the deal formally, it may wield informal influence to shape the outcome. Orbia's stronger financial position after refinancing much of its debt has allowed it to push for better terms. For Wang, securing Netafim would catapult Dayu onto the world stage, blending Chinese manufacturing scale with Israeli innovation.

The talks underscore broader trends in cross-border mergers, where debt reduction drives sales and national preferences clash with market realities. As negotiations progress, all eyes are on whether this deal closes, potentially redefining irrigation technology's future.

In summary, Haoyu Wang's bid for Netafim at around $1.4 billion follows a failed Israeli offer, with Orbia seeking to shed debt while the kibbutz holds a minority stake. This could merge Israeli drip irrigation expertise with Chinese ambitions, altering the global agrotech landscape.