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Dan Acquires Tnupha Amid Public Transport Crisis
Dan Transportation has agreed to acquire the struggling bus operator Tnupha, also referred to as Tnuva, for approximately 150 million shekels. The deal, which has been reported to the National Public Transport Authority, comes after months of severe operational failures, public outcry, and regulatory pressure. The finalization of the acquisition remains subject to approval from the Ministry of Transportation and the Competition Authority.
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What happened
- 01Dan Transportation agreed to acquire the struggling bus operator Tnupha for approximately 150 million shekels.
- 02Tnupha received the lowest service score among Israeli operators in late 2025 and accumulated up to 80 million shekels in fines.
- 03The National Public Transport Authority threatened to revoke Tnupha's license unless it submitted an improvement plan or sold the company.
- 04Approximately 30% of Tnupha's fleet was non-operational due to technical faults, causing frequent cancellations in Samaria and the Jerusalem corridor.
- 05Dan will take over Tnupha's routes and drivers, but regulators are requiring the purchase of at least 100 new buses.
- 06The acquisition is part of Dan's expansion strategy under new ownership led by CEO Ofir Karni.
- 07Internal disputes among Tnupha's partners over fund distribution persist but are not expected to block the sale.
Tnupha, which operates routes in the Jerusalem corridor, Samaria, and Beit Shemesh, has faced intense criticism for poor service, chronic delays, and frequent trip cancellations. Approximately 30% of its fleet has been out of service due to technical malfunctions, and the company received the lowest performance score among Israeli operators in late 2025. These failures led to accumulated fines of around 78 million to 80 million shekels by the end of 2025, alongside a threat from the National Public Transport Authority to revoke its license.
Under the terms of the agreement, Dan will take over Tnupha's routes and drivers, and Tnupha will operate as a subsidiary of Dan. However, Dan will inherit significant operational challenges, including an aging fleet and driver complaints. Regulators are expected to require Dan to purchase at least 100 new buses to replace Tnupha's problematic vehicles, an investment estimated between 18 million and 22 million euros. While Tnupha's controlling shareholders have signed off on the sale, internal disputes among its partners regarding the distribution of funds persist but are not expected to derail the transaction.
Summarized by baba from the reports of 5 newsrooms. Updated
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