Israel Canada has announced the acquisition of Acro for 3.1 billion shekels, in a deal comprising 40% cash and 60% shares. This merger values Israel Canada at 6.9 billion shekels and Acro at 3.1 billion. Barak Rosen will serve as the CEO of the merged group. This transaction comes as Acro's stock has lost 26% of its value over the past year. The Israeli real estate market is experiencing turbulence, with forecasts predicting continued declines in housing prices in areas such as Herzliya, Tel Aviv, Ramat Hasharon, and Givatayim over the next five years. Additionally, half a million urban renewal apartments are under construction in the Gush Dan area, increasing the housing supply. This acquisition occurs in a market context where many players are receiving abundant financing, disrupting traditional market dynamics.
