Spanish bidder targets $1.4 billion Netafim after Chinese deal hits regulatory wall
U.S. scrutiny over Netafim's American operations has opened the door to a new potential buyer.
Difficulties obtaining approval from U.S. regulators are complicating efforts to sell Israeli drip irrigation manufacturer Netafim to Chinese billionaire Haoyu Wang, opening the door to a new potential buyer. Calcalist has learned that Spain's MatHolding, a privately owned industrial group specializing in water and irrigation technologies, has begun evaluating a bid for the company.
MatHolding is no stranger to the Israeli market. In 2014, it acquired Dorot Control Valves from Kibbutz Dorot, before later purchasing A.R.I. from Kibbutz Kfar Haruv. The two businesses were subsequently merged with U.S.-based OCV under the group's water technology subsidiary, Aquestia, which has become a major global player in water management and flow control systems.
The Spanish group also has a long-standing commercial relationship with Netafim, serving as the company's distributor in Spain, giving it detailed familiarity with the business.
However, MatHolding is significantly smaller than Netafim. The group's annual revenue is approximately €500 million, roughly half of Netafim's annual sales, making it unlikely to pursue the acquisition on its own. Industry sources estimate that, should negotiations with Netafim's controlling shareholder Orbia progress, MatHolding would likely partner with either an Israeli or international private equity fund. Another option under consideration would see Kibbutz Hatzerim, which owns the remaining 20% of Netafim, increase its stake as part of the transaction.
Orbia, formerly known as Mexichem, put Netafim up for sale in a process first revealed by Calcalist in October 2025. The Mexican company hired investment bank Evercore to oversee the sale, but the process has advanced slowly as prospective buyers have balked at Orbia's asking valuation of approximately $1.4 billion.
The first serious bidder was Israeli private equity firm Fortissimo Capital, led by Yuval Cohen, which offered roughly $800 million in equity while assuming approximately $400 million of Netafim's debt. Negotiations ultimately broke down because of valuation differences.
Attention then shifted to Chinese billionaire Haoyu Wang, controlling shareholder of private irrigation company Dayu and a member of investment firm Hopu. Wang held advanced discussions to acquire Netafim at an enterprise value of approximately $1.4 billion, equivalent to roughly $1 billion excluding debt. The transaction was intended to be completed through Wang personally, rather than through Dayu, before eventually combining the two businesses.
As part of the negotiations, Wang visited Israel and toured Netafim's facilities at Kibbutz Hatzerim and Magen. Even at the proposed valuation, the deal would represent a substantial discount to the approximately $1.8 billion valuation at which Orbia acquired control of Netafim in 2017. Since then, Orbia has struggled to improve the company's performance.
The biggest obstacle to completing the transaction has proved to be U.S. regulation. Netafim generates roughly $250 million in annual revenue in the United States, about one-quarter of total sales, and legal reviews concluded that selling the company to a Chinese buyer would likely require approval from U.S. authorities.
Industry sources believe obtaining that approval would be challenging given heightened geopolitical tensions between Washington and Beijing and increased scrutiny of Chinese investments involving businesses with significant U.S. operations.
One option explored during the negotiations was to carve out Netafim's U.S. business from the transaction, reducing the purchase price accordingly. However, people familiar with the discussions said such a structure would add considerable complexity and significantly reduce the likelihood of completing the deal.
Against that backdrop, MatHolding has emerged as a potential alternative buyer.
Founded in 1935 and headquartered in Barcelona, MatHolding operates in two core businesses: water and irrigation technologies, and crop protection products. The family-owned company employs more than 1,200 people and sells its products in over 140 countries.
Originally established as a manufacturer of agricultural chemicals, MatHolding gradually expanded into water infrastructure under the ownership of the Matas family, from whom the company takes its name. Today the group is chaired by Pau Relat, who oversees its international expansion and is believed to be leading discussions with Orbia.
Although privately held, MatHolding regularly publishes financial results. Revenue reached €406 million in 2024, up 17% from the previous year, driven by 23% growth in its agricultural business and 20% growth in its water division. Growth continued into 2025, with revenue rising to €429 million, an increase of about 6%.
Around 70% of Mat's revenue is generated outside Spain, and the company has invested approximately €147 million in research and development over the past six years. It operates manufacturing facilities in Spain, Israel, the United States, China and India, and continues to focus on water management and agricultural technologies as demand for efficient water infrastructure rises amid climate change and growing water scarcity.
