Chinese billionaire poised to acquire Netafim in $1.4 billion deal
The 35-year-old chairman of Dayu, Haoyu Wang, is teaming up with the Hopu fund as Orbia seeks a partial exit; U.S. approval looms over deal for irrigation pioneer.
A young Chinese billionaire, Haoyu Wang, is negotiating to acquire control of the Israeli irrigation company Netafim from the Mexican group Orbia, Calcalist has learned. Wang, the controlling shareholder of the private Chinese irrigation company Dayu, has joined forces with the Hopu fund in a bid to purchase Netafim at a valuation of $1.4 billion, while the Israeli company carries $400 million in bank debt.
According to sources, Wang intends to finance the transaction from his personal capital, rather than through Dayu. At a later stage, he may seek to merge Netafim with Dayu. For Israeli industry, the potential transfer of the global pioneer of drip irrigation, and the largest company in its field, into Chinese ownership represents nothing short of a strategic watershed moment.
Calcalist has learned that Wang visited Israel last month, touring Netafim’s plants in Hatzerim and Magal and meeting with senior management. His offer is significantly higher than the $1.1 billion valuation previously sought by the Israeli private-equity fund Fortissimo, led by Yuval Cohen. Even so, the proposed price remains below the $1.8 billion valuation at which Orbia acquired an 80% stake in Netafim in 2017. Since that acquisition, Orbia has struggled to meaningfully improve Netafim’s performance.
Wang, 35, became CEO of Dayu around a decade ago after his father, the company’s founder, died unexpectedly of a heart attack. Under the father, Dayu generated roughly $200 million in annual revenue; under the son, sales have grown to about $700 million, making it the largest irrigation company in China. Wang, who studied at Johns Hopkins University in the United States, also holds substantial real-estate investments in the U.S., and in 2019 was named by Forbes as one of China’s most promising young entrepreneurs.
That same year, Wang visited Israel with Dayu executives for a series of meetings, including at the Firon law firm. Industry sources, including individuals close to Netafim, describe him as an admirer of Israel and its technological leadership in water management. “His father aspired to be the global leader in the field, and his goal today is to fulfill that vision by acquiring Netafim,” said a source close to the company.
During the 2019 visit, Wang announced the opening of a small representative office in Israel aimed at investing in R&D and identifying water-technology startups. In a speech at the time he recalled how his father founded Dayu in 1999 in the arid Chinese province of Gansu: “Twenty years later, we want to expand globally and create new opportunities together with Israeli companies. I am aware of the cultural gaps and obstacles, but with the help of technology we will overcome them.” Dayu also signed a cooperation agreement with Metzerplas of Kibbutz Metzer.
Last October, Calcalist revealed that Orbia had hired Evercore bank to find a buyer for Netafim based on an enterprise value of around $1.2 billion, equivalent to roughly $800 million in equity with the buyer assuming $400 million in debt. At the time, Fortissimo was the sole serious bidder. Orbia, a public company burdened by significant debt, kept a low profile during the process. Fortissimo, which required backing from institutional investors, failed to close the deal during Cohen’s visit to New York, where he met Orbia’s owners. The fund requested additional weeks to review the asset and seek a lower price, and negotiations were suspended just as the Chinese bidders entered the picture.
Since then, Orbia has refinanced much of its $8.6 billion debt (including $2.6 billion in current liabilities), strengthening its financial position and allowing it to take a tougher stance in negotiations. The Mexican group is now expected to retain a 10-20% stake in Netafim rather than exit completely, with the buyer receiving an option to purchase the remaining shares in the future.
Netafim itself improved its performance in 2025, posting EBITDA of $135 million, above earlier forecasts of $125 million. Kibbutz Hatzerim still holds 20% of the company and has made no secret of its preference for an Israeli buyer, though talks with Fortissimo collapsed. Under the partnership agreement with Orbia, Hatzerim can block a new shareholder only if it originates from a hostile country without diplomatic relations with Israel, conditions that do not apply to China.
At present, the principal, and perhaps the only, obstacle to the deal appears to be U.S. regulators. Netafim generates about $250 million annually in the United States, roughly a quarter of its sales. Legal reviews are underway to determine whether a sale to Chinese ownership requires U.S. government approval and, if so, the likelihood of obtaining it. The issue has also raised questions about whether Dayu would compensate Orbia should the transaction be blocked after other potential buyers have withdrawn.
Dayu specializes in cost-effective irrigation technologies, urban and rural water-resource management, and wastewater treatment. The company is traded on the Shenzhen Stock Exchange at a valuation of about $750 million. It reported $631 million in revenue in 2024 with net profit of $11.7 million; in the 12 months ending September 2025, revenue reached $657 million with net profit of $9 million.
Alongside Wang stands the Hopu fund, which manages $15 billion and operates from Beijing, Hong Kong, and Singapore. Beyond providing financial backing, the fund may help improve the chances of U.S. approval thanks to its global investor base.
In 2017, Orbia paid roughly $1.5 billion for control of Netafim: about $241 million went to Kibbutzim Hatzerim and Magal, with the remainder paid to the Permira fund, which had acquired Netafim from the Tene fund in 2011 at a valuation of about $850 million.
