Israel Finance Ministry objects to Zim's $4.2 billion sale to Hapag-Lloyd
Hapag-Lloyd and Fimi have proposed a direct Far East route with at least 16 vessels carved out for a new Zim Israel unit
Published
Israel's Finance Ministry has objected to the proposed $4.2 billion sale of Zim to Hapag-Lloyd, citing security concerns over stakes held in the German shipping company by Qatar and Saudi Arabia. Qatar holds 12.3% of Hapag-Lloyd and Saudi Arabia holds 10.2%, according to Ground News.
The objection follows opposition first raised in July by Israel's Defense Minister, Israel Katz, who said the deal as proposed did not adequately protect the country's security interests, according to Briefs. Haaretz reports that Prime Minister Benjamin Netanyahu's office has gone further, recommending the sale be rejected outright. Israel's Government Companies Authority is leading the review, gathering input from several ministries before a government decision, Briefs reports.
The deal was struck in February at $35 a share and later revised to $4.2 billion in total value, according to Axios. Zim shareholders approved it in April, according to Stocktwits, which also reports that Israel retains a golden share in Zim giving the government the right to approve or block the transaction, meaning the Finance Ministry's objection carries real legal weight.
Hapag-Lloyd and the Israeli private equity firm Fimi submitted a revised proposal on September 24 meant to address those concerns, the Jerusalem Post reports. It would have Hapag-Lloyd take control of Zim's global operations while Fimi separately acquires 16 vessels carved out into a new company, Zim Israel, to run Israel-focused routes, along with stronger golden-share protections, according to Briefs. Zim shares closed Monday at $28.67, according to Axios, well below the $35 offer price.
The objection adds a regulatory hurdle that did not exist earlier in the process. It comes as Hapag-Lloyd itself has been signalling caution, having just raised its full-year earnings guidance to a range of $3.9 billion to $4.4 billion, its second increase this year, a range still wide enough to reflect uncertainty tied to geopolitical volatility. The two companies are also already restructuring shared Gemini network routes, deepening their commercial ties even as the ownership deal runs into political resistance in Israel. For Zim shareholders, the practical effect is a higher chance the transaction is delayed or renegotiated rather than closing on its current terms, without any change to Zim's underlying shipping business.