ICL Signs Binding Agreement with Israel on Dead Sea Concession Assets Ahead of 2030 Expiry
ICL will transfer Dead Sea concession assets to the State of Israel in 2030 in return for fixed compensation, while retaining the option to bid for the future concession under a competitive process.
30 January 2026, Tel Aviv: ICL Group has signed a detailed and binding agreement with the State of Israel concerning the assets of the Dead Sea concession, a move the company says will significantly reduce uncertainty ahead of the concession’s scheduled expiry in 2030.
The agreement, signed on January 27, 2026, follows a Memorandum of Understanding (MoU) executed in November 2025 between ICL and the Israeli government, represented by the Accountant General at the Ministry of Finance. It governs the valuation, transfer and compensation related to the assets of Dead Sea Works Ltd., Dead Sea Bromine Company Ltd. and Dead Sea Magnesium Ltd., collectively referred to as the Dead Sea Companies.
Under Israel’s Dead Sea Concession Law, the current concession expires on March 31, 2030, after which the State intends to award a new concession through a competitive tender process. Upon expiry, all fixed tangible assets required for operating the concession are to be transferred to the State, with compensation paid to the concession holder.
According to ICL, the newly signed agreement provides clarity on both the value of the concession assets and the timing of payments, enabling the company to plan for the transition period. The company reiterated that it does not expect the agreement to have a material impact on its financial results.
USD 2.54 Billion Compensation Framework
As per the agreement, Israel will pay ICL a total base consideration of USD 2.54 billion for the transfer of ownership and possession of the concession assets. In addition, the State will reimburse investments made by the Dead Sea Companies from January 1, 2025, related to the establishment of a permanent solution for salt harvesting, transportation and disposal at the Dead Sea. These investments are estimated to amount to several hundred million dollars.
The agreement defines the “Concession Assets” to include both tangible and intangible assets used for operating the concession. These assets will be transferred in a fit and operational condition, ensuring continuity for future operations. A detailed asset transfer procedure will be finalised six months prior to the concession’s expiry, including a structured handover to the future concession holder.
Investment and Maintenance Obligations
Until the end of the concession period, the Dead Sea Companies are required to maintain multi-year average investment and maintenance levels based on historical activity over the past decade. A new investment procedure replaces the 2020 framework and introduces periodic reporting, state oversight, and financial reconciliation mechanisms. Adjustments to the total consideration may be made depending on whether actual investments exceed or fall short of agreed benchmarks.
At the end of the concession on April 1, 2030, the State will pay 95 per cent of the total consideration, subject to adjustments. The remaining 5 per cent will be settled by September 1, 2030, following final reconciliation, except for disputed amounts or pending reimbursements linked to the salt harvesting solution.
Continuity for Downstream Industries
To ensure operational continuity, certain operational agreements essential for downstream industries will be assigned to the future concession holder. These agreements, covering the supply of key raw materials, will remain in force until March 31, 2035, with options for extension. Based on current price levels, ICL does not anticipate any material change in the profitability of its downstream operations or the concession activities.
ICL has also agreed to cooperate with the State in preparations for the future tender, including providing access to information and allowing inspections of concession assets. The company confirmed it will not oppose the cancellation of its right of first offer under the current law and intends to participate in the competitive bidding process for the future concession, subject to economically viable terms.
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