A mega-deal in Israel’s retail and food market: Shuk Hertzel, the supermarket chain owned by the Dudu Ezra Holdings Group, is acquiring the Stop Market supermarket chain at a deal valuation of approximately NIS 680 million. The transaction was completed after receiving approval from the Competition Authority on October 11, 2026.
Bank Hapoalim is serving as the deal’s banking financier, providing Dudu Ezra Holdings Group with approximately NIS 500 million. A dedicated company owned by the group was established for the acquisition.
The two chains, which will continue to operate as separate brands, currently have a combined total of 23 branches nationwide. Shuk Hertzel operates 12 branches, while the acquired Stop Market chain – which was established about 26 years ago by Yossi Mashiah and employs around 900 workers – operates 11 branches. Stop Market is characterized by operating seven days a week and large branches of about 2,500 sq.m., with an emphasis on premium products.
Expansion plans in the North and Center
Shuk Hertzel intends to continue expanding operations by opening 10 additional branches over the coming year, primarily in the northern region alongside expansion in the Center. The new branches are scheduled to open in Yehud, Kiryat Shmona, Hatzor Haglilit, Katzrin, Ma'alot, Ami'ad, Tirat Carmel, Ramat Yishai, Hazore'a, and Acre.
According to Dudu Ezra Group estimates, the combined sales volume of the group following the acquisition is expected to reach approximately NIS 1.5 billion per year. In line with the new branch opening plan, the sales volume could reach about NIS 2 billion by the end of 2027.
Dudu Ezra Group was established in 1989 by Dudu Ezra, a farmer from Moshav Ramot Naftali, and is active in the fields of food retail, fruits and vegetables, logistics, and distribution. Shuk Hertzel specializes in marketing fresh fruits and vegetables through a consignment model and operating approximately 100 franchised departments at retailers nationwide, alongside a logistics center at Kibbutz Ramat Yohanan. The combination of the chains is expected to generate operational and commercial synergy, increase purchasing power with suppliers, and streamline procurement and logistics operations.
Moshiel Elkayam, CEO and owner of the Shuk Hertzel chain, stated: "The merger with Stop Market represents a significant strategic step in building a strong food retail group with a broad nationwide presence. The move is based on a successful, years-long business partnership through which we operate some of the fruit and vegetable departments in Stop Market branches." Elkayam added that the Shuk Hertzel customer club currently numbers more than 200,000 members, and the merger will enable the creation of a joint customer club that will include half a million members or more.
Shmulik Arbel, deputy CEO and head of the Corporate Banking Division at Bank Hapoalim, welcomed the transaction and said: "This move marks a significant milestone in Israel’s food and retail sector. Leading the financing for this deal reflects the expertise and experience of the Industry, Commerce and Hotels sector managed by Sarit Segev. Bank Hapoalim will continue to support leading Israeli companies and finance key growth engines in the economy."
Representing Shuk Hertzel in the transaction were attorneys Ilan and Efrat Zohar from the A. Zohar & Co. law firm. Bank Hapoalim was represented by attorneys Eli Eliya and Hana Atias from the Gornitzky law firm.