The Adani Group's acquisition of the Haifa port last week for USD 1.18 billion is being viewed as a "strategic purchase" where "price was less important".

As per media reports, Adani Ports and Special Economic Zone Limited (APSEZ) in Israel, the business won a competition to privatise Haifa port, Israel's second biggest port, last Thursday in collaboration with Israel's Gadot Group.

According to the daily Ha'aretz, dani Ports offered 4.1 billion shekels (USD 1.18 billion) for the port, which was 55% more than the second highest proposal.

This is a far higher price than the Israeli government had anticipated, with a price-to-earnings ratio of 18. (roughly calculated, based on the average of the past three years).

Indeed, when local groups seeking to acquire the port learned the sum Adani Ports had offered, they all backed out, according to the report.

Israel anticipates that Adani's entry into the Israeli market would result in increased Indian investment, particularly in renewable energy and defence.

The Adani company is already working with prominent Israeli defence firms to establish a drone manufacturing centre in India.