ICL Group Signs Binding Deal With Israel on $2.54B Concession Asset Transfer, 2030 Exit

Executives from ICL Group (NYSE:ICL) held a call to discuss a final, binding agreement signed with the State of Israel covering the valuation and transition process related to the company’s current concession. Management emphasized that the call was limited to the agreement’s terms as disclosed in an “immediate report,” and that discussion of ongoing business performance would be reserved for a separate call scheduled in the coming weeks.

Final agreement formalizes prior MOU

ICL said the agreement signed “last night” is based on the principles of a memorandum of understanding (MOU) that was published in November 2025. Executive Elad said the binding agreement provides additional detail on execution but includes “basically no changes” from what was previously disclosed, repeatedly characterizing the update as “no drama” and not a major development beyond formalizing the final terms.

According to Elad, the agreement is intended to provide long-term certainty ahead of the concession’s expiration and reduce the risk of extended arbitration or legal disputes. He said ICL chose to manage the process proactively rather than be driven by the state’s timelines, with the goal of avoiding management distraction and resource drain.

Asset valuation and transfer terms

ICL and the State of Israel agreed on an asset valuation of $2.54 billion. Elad also referenced “hundreds of millions of dollars” related to investments in a permanent salt harvesting project, describing the total arrangement as providing clearer financial visibility as the concession approaches its end.

Under the agreement, upon expiration of the current concession at the end of March 2030, ICL will transfer all tangible and intangible assets used for the concession operations to the state “in usable condition,” with the stated intent of enabling continuous operations.

Payment schedule and no set-off provision

Management highlighted the payment schedule and a “no set-off” clause as particularly important elements of the finalized agreement.

• April 1, 2030: the government will pay 95% of the total consideration.
• September 1, 2030: the remaining 5% will be paid.
• No set-off rights: the state will have no right to set off claims against the total consideration under the agreement, which Elad described as a “very important clause” for ICL.

Downstream continuity through 2035

ICL also discussed provisions aimed at protecting continuity for its downstream businesses, which management identified as including bromine compounds and periclase. The agreement secures continued supply of required raw materials for downstream activities through 2035, or five years after the concession ends. Elad said this period will be extended unless either side chooses to end it.

Based on current prices and the arrangements described in the agreement, the company said it does not expect a material change in profitability for its downstream or concession operations. Elad said the agreement supports maintaining downstream profitability “at least until 2035.”

Tender process, right of first offer, and potential bidder restrictions

Elad said the company will not object to cancellation of its right of first offer and will cooperate with the state’s tender process, including providing access to necessary information. In response to analyst questions, he outlined an expected process in which the government completes legislation within roughly a year to a year and a half, followed by a pre-qualification phase, then due diligence and potential site surveys by viable candidates.

On timing, Elad relayed what he said government officials have indicated: pre-qualification in 2026, an RFP in 2027, selection of the next concession holder by the end of 2027, and allocation by the beginning of 2028, while cautioning that the timetable may be optimistic.

Management also addressed questions about potential limitations on foreign participants. Elad said the new law leaves room for “national security arrangements,” and that the government has indicated it will take national security interests into account when defining limitations for foreign competitors. When pressed, he agreed this could mean the government may limit who can own the concessions to parties it deems acceptable under those criteria.

Looking beyond 2035 in a scenario where ICL is not the next concession holder, Elad said he believes a new concession owner would still have incentives to sell bromine after that period, while adding that ICL would also develop other options “not only dependent on bromine,” citing broader regulatory pressures on bromine unrelated to the concession itself.

The call concluded with management noting the company plans to address quarterly and full-year results on February 18.

About ICL Group (NYSE:ICL)

ICL Group is a global specialty minerals and chemicals company headquartered in Tel Aviv, Israel. Established in its current form through the consolidation of Israeli government–owned chemical operations, ICL has evolved into a publicly traded entity on the New York Stock Exchange (NYSE: ICL). The company’s origins date back to state-driven mineral extraction in the Negev and the Dead Sea region, and over the decades it has grown through strategic acquisitions, technological innovation and a gradual privatization process completed in the early 2010s.

ICL’s core operations are organized into three principal business areas.