developing· Economy· Updated
Dan Acquires Tnuufa Public Transport Company for NIS 150 Million
Dan Transportation has signed an agreement to acquire the struggling public transport company Tnuufa for approximately 150 million shekels (about $40 million). The deal, which is pending approval from the Ministry of Transport, the Competition Authority, and the Government Companies Authority, is expected to transfer control to Dan in early 2027.
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What happened
- 01Dan Transportation signed an agreement to acquire the bus company Tnuufa for approximately 150 million shekels.
- 02The acquisition follows years of passenger complaints and 80 million shekels in fines imposed on Tnuufa for service failures.
- 03The National Public Transport Authority issued an ultimatum to Tnuufa to sell the company or lose its routes.
- 04Tnuufa has suffered from severe malfunctions, with about 30% of its 420 buses out of service.
- 05The deal will expand Dan's operations into Samaria, Beit Shemesh, and the Jerusalem Corridor, growing its fleet to 3,500 buses.
- 06Dan plans to purchase at least 100 new electric Higer buses to replace Tnuufa's problematic Wisdom buses.
- 07The transaction is pending regulatory approval and the transfer of control is expected in early 2027.
Tnuufa, established in 2020, has faced years of severe passenger complaints and cumulative fines of about 80 million shekels from the Ministry of Transport for failing to meet operational standards. The company, which operates in Samaria, Beit Shemesh, and the Jerusalem Corridor, has suffered from driver shortages, frequent bus malfunctions, and unannounced cancellations. A recent investigation revealed that about 30% of Tnuufa's 420 buses were out of service due to malfunctions, leading to the cancellation of 5% to 10% of scheduled trips.
The crisis prompted Idan Moalem, Chairman of the National Public Transport Authority, to issue an ultimatum to Tnuufa to either sell the company or lose its routes, which accelerated the acquisition. Under the agreement, Tnuufa will operate as a subsidiary of Dan, expanding Dan's total fleet to approximately 3,500 buses. Dan plans to replace Tnuufa's problematic Wisdom buses by purchasing at least 100 new electric Higer buses, which Dan imports, and has already surveyed sites in Samaria to install charging stations.
Summarized by baba from the reports of 3 newsrooms. Updated
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