The expansion of Blue Square supermarket chain to the US is being considered by its new owners, a consortium headed by Alon Dor Fuel Company and Mathew Bronfman, according to David Wiessman, president of Alon Israel Oil Company, the parent company of the Dallas-based Alon USA.
Alon Fuel and Mathew Bronfman won the bid to purchase a 78% stake in Blue Square Israel Ltd, for which they paid NIS1.34bn (US$287m).
A report in the Jerusalem Post notes that the price for the second-largest supermarket chain in Israel “reflects a 25% premium on the Blue Square’s current market value.” The report quotes Wiessman as saying “Just as we successfully brought Alon to the US, we consider expanding Blue Square chain to the US.”
He added that as for future plans, “it is intended to incorporate the Blue Square Co-Op chain of supermarkets with Alon’s various assets”.
Alon USA operates 1,714 gas stations in the US and a refinery in Big Spring, Texas, among other assets.
The Alon-Bronfman offer to purchase Blue Square was some 20% higher than the other bidders, Paz Oil Company, Karden Ltd., and Rami Shavit.