Bethel Finance: No clear candidate to take helm at Israel Chemicals

www.bethelfinance.com
Bethel Finance news:
Israel Chemicals Ltd. (TASE: ICL) CEO Akiva Mozes, who announced his retirement today, leaves big shoes to fill. However, in contrast to Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), which simultaneously announced the resignation of president and CEO Shlomo Yanai and the appointment of his successor, Dr. Jeremy Levin, and Bank Leumi (TASE: LUMI), which has two outstanding candidates to replace president and CEO Galia Maor (deputy CEO Rakefet Russak-Aminach and Rony Hizkiyahu, Israel Chemicals has no obvious candidate to succeed Mozes.

Mozes did not groom a successor, although he trained a number of executives. A possible successor is Israel Chemicals EVP corporate development Yossi Shahar, who has headed the company's Industrial Products and Performance Products subsidiaries since 2002. He implemented the company's business strategy, including several international acquisitions.

A second possible successor is VP human resources Asher Rapaport.

Market sources believe that, in contrast to Teva, Israel Chemicals' parent company, Israel Corporation (TASE: ILCO), will seek to appoint an Israeli to head the company, possibly an associate of Idan Ofer.

When the Ofers appointed Mozes as CEO of Israel Chemicals after acquiring it in 1999, he was the first CEO to be appointed from within the company. Its share price has since risen almost 1,000%, and its market cap climbed from NIS 20 billion to NIS 51 billion, making it Israel's second largest public company, after Teva. The company's net profit was $1.1 billion in January-September 2011, 47% more than in the corresponding period of 2010, and its revenue rose 25% to $5.3 billion.

Israel Chemicals' success has been noted by its second largest shareholder, Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT), which has asked the Israeli government for permission to increase its stake in the company from 14% to 25%.

Israel Chemicals' success is due to its primary market, potash, which as a relatively inelastic demand, as well as to restructuring measures that Mozes implemented during his tenure to focus its business on four areas, strategic acquisitions, and the closing of unprofitable operations.