The Israeli government has concluded its review of Hapag-Lloyd's (Hapag-Lloyd) deal to acquire Zim (Zim) while allowing the company and its investor, FIMI, to submit a new proposal. This decision was made following increased concerns regarding national security and Israel's maritime independence.
Details of the Proposed Deal
Hapag and FIMI intended to acquire Zim and establish a new domestic shipping company responsible for managing maritime routes to Israel and meeting the government's golden share requirements. In the new proposal, the two companies sought to add an Asian trade route to the new company and strengthen government control over Zim. However, there was no financial increase in the initial proposal.
Read more: Increase in European gas prices to €73.62 amid Hormuz crisis
Reports indicate that the Israeli Ministry of Finance opposed the deal by sending an official letter, expressing concerns about national security, maritime independence, and the financial capabilities of the new company. The ministry also pointed to investments made in Hapag-Lloyd by the sovereign wealth funds of Qatar and Saudi Arabia, emphasizing that Zim could become dependent on Hapag.
Political and Security Barriers
In addition to the Ministry of Finance, the Ministry of Defense has also opposed the deal due to security concerns, emphasizing the need for a strong and independent shipping company for Israel. Furthermore, there are reports of opposition from other entities and ministries regarding this deal, indicating broader concerns among Israeli officials.
Following these developments, the Prime Minister's Office of Israel has also expressed concerns about the deal, pointing to a gap between corporate structure and operational and strategic realities. For this reason, the office has recommended reviewing and rejecting the proposed deal. On September 29, the Companies Authority informed Hapag-Lloyd that the review of the deal had been completed, and since then, various ministries and officials have continued to discuss the potential of this deal.
The Companies Authority has also emphasized that any new agreement requires re-evaluation and approval by the boards of directors of the companies. Meanwhile, the final deadline for this deal has been announced as February 2027, which may also be extended to June 2027.
In the meantime, Hapag-Lloyd has provided its shareholders with an optimistic outlook, citing increased market demand and positive growth in freight rates. The company has significantly raised its financial forecasts and expects to reach revenue in the range of $3.9 to $4.4 billion (EBITDA) for the current year.
Read more: Hoa Phat signs contract for new tanker construction · Peter Hegst justifies the war against Iran with 9/11
