China Acquires Israeli Dead Sea Cosmetics Company for $77 Million
Sputnik – April 11, 2016
On Sunday, Vice President and CEO of Fosun Group, Liang Xinjun, signed an agreement to purchase Ahava with Executive Director of Gaon Holdings Guy Regev. The deal amounted to $77 million.
The ceremony took place in the presence of high-ranking Israeli officials at the David Citadel Hotel in Jerusalem and was witnessed by Israeli government officials and representatives of both companies.
Under the terms of the agreement, Fosun will acquire the holdings from all Ahava’s shareholders including Gaon Holdings, Shamrock Israel Growth Fund Advisors, Kibbutz Mitzpe Shalem, and Kibbutz Kalia.
Vice-President of Fosun, Liang Xinjun, said he was pleased with the results of agreement and hopes to bring Ahava into the Chinese market.
Chinese companies and corporations have been active in the Israeli market over the last few years. In 2011, China National Chemical Corporation acquired Adama, which produces pesticides, for a price of $2.4 billion and in 2015 the Chinese company Bright Food acquired a controlling stake in Israel’s largest producer Tnuva, which is heavily involved in dairy goods.
In addition, China is already the world’s largest importer of cosmetics and health products based on minerals from the Dead Sea.
Experts believe that China’s geopolitical presence in Israel will only continue to grow. In particular, due to the construction of the state-owned China Harbor seaport of Ashdod on the Mediterranean Sea.
The country’s first private port will not appear before 2021. The project cost is estimated at over one billion dollars. The purpose of the project is to connect Ashdod with the southern Israeli city of Eilat and transport goods to Europe, bypassing the Suez Canal.
Natural resource exploitation in the Dead Sea area – The case of Ahava
Alhaqhr | October 28, 2014
This is the first in a series of new Virtual Field Visits focusing on the topic of business and human rights. This video will highlight corporate complicity in the exploitation of natural resources in the Dead Sea area of the Occupied Palestinian Territory.
Ahava blockaders Supreme Court appeal fails, but campaign remains victorious
By Tom Anderson and Therezia Cooper | Corporate Watch | February 7, 2014
An appeal to the Supreme Court by two campaigners against the Ahava store in London has been unsuccessful.
The campaign
Ahava manufactures its products at the Israeli settlement of Mitzpe Shalem in the occupied West Bank. The settlements of Mitzpe Shalem and Kibbutz Kalia are shareholders in the company (see here).
Ahava, a multinational Israeli Dead Sea products company, was forced to close its flagship store Monmouth Street, central London in 2011 after two years of concerted campaigning by grassroots groups.
The case
The two campaigners, Matt Richardson and Gwen Wilkinson, had locked themselves to a concrete barrel inside the Ahava store on Monmouth street with the aim of stopping the shop from doing business. The store closed for the day. Police arrived and cut them free. They were arrested for aggravated trespass under Section 68 of the Criminal Justice and Public Order Act.
In their defence they argued that the store’s business was unlawful on the basis that the shop was:
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aiding and abetting a war crime by aiding the transfer of Israeli civilians into the Occupied Palestinian Territories
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The products in the shop were criminal property as they were the proceeds of a war crime
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The products had fraudulently claimed the benefits of the Eu-Israel Association Agreement
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The products had been labelled Israeli when they were in fact from a settlement
In the Magistrate’s Court the defendants were not successful. They were given a conditional discharge and a fine. In an appeal to the High Court the judge upheld their conviction.
The campaigners were appealing against their conviction to the Supreme Court and on the following point of law: “Should the words ‘lawful activity’ in section 68 Criminal Justice and Public Order Act 1994 be limited to acts or events that are ‘integral’ to the activities at the premises in question?”
The court ruled that the answer to that question is “yes” and that the convictions should be upheld. Importantly the judgement says that for activists to use the defence that businesses are unlawful in aggravated trespass cases then the unlawful business must be integral to the business obstructed. Ie it might follow that if activists lock themselves to the gate of a pharmaceutical company that is involved in illegal animal testing then it is only a defence in court to argue that the company’s business isn’t lawful if the business you disrupt is ‘integrally’ involved in the unlawful activity.
The judgement can be viewed here, and here
The option of appealing to the European Court is still open to the defendants
Implications
The ruling is an example of the English court system attempting to close avenues for lawful resistance to corporate crime. In reality, corporations are multinational enterprises that commit crimes across continents. The defence that was the subject of the appeal has often been a chance for ordinary people to express their anger against these crimes.
Its important not to overestimate the importance of this ruling – it only actually adjudicated on the application of the defence in aggravated trespass case. It does not rule out the use of similar defences in criminal damage cases like those used by the Raytheon 9 and the EDO decommissioners, who were found not guilty after breaking into arms factories linked to the supply of arms to Israel and destroyed machinery and computers in order to stop war crimes.
Direct Action
Its also important to remember that the Ahava campaigners were successful in their campaign. The store closed down, not as a result of a court victory but as a result of a concerted grassroots campaign. The victory came after two years of regular demonstrations, blockades of the store, legal challenges as well as acts of direct action which included activists daubing slogans on the windows, super-gluing the locks during the night and throwing paint bombs at the shop front. This combination of public demonstrations, legal challenges and clandestine direct action proved a successful formula.

Japanese Distributer Ends Contract With AHAVA
By Saed Bannoura | IMEMC News | February 27, 2012
DaitoCrea, Japanese agent of the Israeli cosmetics firm, AHAVA, announced on their Webpage that it has ended all sales of AHAVA products for what it attributed to “financial reasons”. The Boycott Divestment and Sanctions (BDS) movement said that decision is the outcome of direct action and protests.
The company stopped all AHAVA sales starting on January 31, 2012. The victory was that of the persistent efforts of a 2-year campaign conducted by the BDS movement that calls for boycotting all Israeli products made in Israel’s illegal settlements in occupied Palestine.
The Forum added that its activists informed the firm, by direct action and advocacy, of the illegality of AHAVA goods and the suffering it inflicts on the Palestinian people.
An Executive at the DaitoCrea told the Palestine-Forum campaign that the company had no idea about the background of AHAVA when they started dealing with them, and had no idea about the location where AHAVA products are made.
AHAVA – Israel products are made in a settlement in the occupied Palestinian West Bank; settlements are illegal under International Law.
AHAVA uses Dead Sea minerals and resources while the Palestinians are kept out of the Dead Sea area due to Israel’s illegal policies.
The campaign informed the distributor that AHAVA labels their products as “Made In Israel” while in fact it is made in an illegal Israeli settlement in the occupied territories.
In May 2010, the campaign held a meeting with officials of the Japanese Ministry of Foreign Affairs and they stated that in is not appropriate for AHAVA to labels its goods as made in Israel while they are made in a settlement.
In 2010, the MUJI beauty products in Japan decided to cancel its plans to open stores in Israel for what they described as “financial reasons”. The BDS movement said that the decision was made after a seven-month campaign against opening the store.
THE BDS movement in different parts of the world is active on different levels, including the boycott of Israeli settlements goods, information about the illegal Israeli occupation, and on cultural and intellectual levels to raise awareness on the Israeli violations against the Palestinian people.
These violations affect every aspect of the life of the Palestinians, and deprive them from their rights in their homeland and their right to their natural resources.
Related articles
- Israeli SodaStream: Maybe Green, Definitely Not Clean (alethonews.wordpress.com)
- BDS movement’s strength shown by pro-Israel groups launching defensive “BUYcott” days (alethonews.wordpress.com)
- There’s no beauty at this exhibition (londonbds.org)
- A visit to London’s World Travel Market (londonbds.org)
- London BDS 2011 year in review (londonbds.org)
- The INDEPENDENT: Natural History Museum attacked over links to ‘illegal’ Israeli company (londonbds.org)

