Duniec, Dan Real Estate mull NIS 4b merger

Listed company Duniec Bros. (TASE: DUNI) and privately-held Dan Real Estate are in talks on a share-swap merger deal, according to a notice to the Tel Aviv Stock Exchange from Duniec this morning. This follows recent reports on the possibility of a merger between the two companies. Duniec’s notice states that the companies have a 45-day no-shop agreement, under which they will carry out due diligence examinations and will consider the feasibility of a deal.

“The exclusivity period is intended to allow the parties to continue the checking process, to examine the terms of the deal and to proceed with talks on the formulation of a possible plan. At this stage it is a matter of examining a deal only, and there is no certainty that the findings of the due diligence examinations or the negotiations between the sides will mature into a binding deal.”

This will not be Duniec’s first merger. In 2022, it merged with Elad Israel Residences, which was owned by Yitzhak Tshuva. Dan Real estate is a company that was split from transport cooperative Dan last year. There were reports recently that it was preparing for a flotation at a valuation of a little under NIS 2 billion. A merger with Duniec will save it the trouble.

Duniec was floated on the Tel Aviv Stock Exchange in 1993. It currently has a market cap of NIS 2.042 billion. In January 2026, real estate investment trust JTLV sold its holdings in Duniec for NIS 530 million, since when the company has had no controlling shareholder.

In its 2025 report, Duniec states that it has “more than 60 years’ experience in development, planning, construction, marketing and selling residential real estate projects, which at the date of the report comprise 27,000 housing units in 55 projects and land plots.” Eighteen of these projects have an approved plan, ten are at advanced planning stages, and 3,000 housing units have obtained building permits. The company also has 24 projects pending in urban renewal, and three plots of land at advanced planning stages on which 14,000 housing units and commercial and industrial space will be built. At the end of 2025, the company’s assets were valued at NIS 2.23 billion.

Duniec’s revenue in 2025 totaled NIS 166 million from sales of housing units and provision of construction services, which compares with NIS 174 million in 2024 and NIS 308 million in 2023.

Dan Real Estate holds the Dan depot in Ramat Hahayal in Tel Aviv, on which construction of 750 housing units is planned, and two plots in Neot Afeka in the city for which a project consisting of 120 housing units is planned.

JTLV exits Duniec with over NIS 500m total gain

On the basis of Duniec’s market cap and the valuation at which the flotation of Dan Real Estate was considered, the merged company should be worth about NIS 4 billion.

Published by Globes, Israel business news – en.globes.co.il – on May 26, 2026.

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