Israel’s shipping giant, ZIM Integrated Shipping Services, is set to be sold to Germany’s Hapag-Lloyd and the Israeli private equity firm FIMI Opportunity Funds. The transaction is valued at approximately $3.7 billion.
Notably, Hapag-Lloyd’s shareholder base includes the Qatar Investment Authority, which owns roughly 12.3% of the company, and Saudi Arabia’s sovereign wealth fund, which holds a stake of around 10.2%.
Structure of the Acquisition
Reports suggest that Hapag-Lloyd will acquire the entirety of ZIM’s shares, resulting in the firm’s delisting from the New York Stock Exchange. The long-term structure remains somewhat unconventional:
Hapag-Lloyd is expected to take over ZIM’s international operations.
FIMI will reportedly assume control of ZIM’s domestic Israeli operations.
This split suggests a strategic division of assets rather than a traditional equity partnership.
State Interests and the "Golden Share"
The Israeli government will retain its "golden share" in the company. Much like the arrangement held with the national carrier El Al, this share ensures the state can rely on the company’s fleet during national emergencies and grants the government veto power over matters of national interest.
As part of the agreement, it is reported that:
- ZIM’s senior management must remain based in Israel.
- A specific quota of vessels must remain under Israeli ownership.
The completion of the deal remains subject to regulatory approval. Once the final "green light" is given, control will transfer to the buyers, provided the state's specific rights are fully preserved.
This is what The Management Board of Hapag-Lloyd Aktiengesellschaft said:
"The Management Board of Hapag-Lloyd Aktiengesellschaft (“Company”) is in advanced negotiations regarding a potential acquisition of all shares in its Israeli competitor Zim Integrated Shipping Services Ltd. (“ZIM”). To date no binding agreements have been entered into. The required approvals of the transaction by the Management Board and the Supervisory Board of the Company, as well as by the competent corporate bodies of the contractual counterparties have not yet been granted. Furthermore, the consent of the State of Israel based on its special rights set forth in the articles of association of ZIM is required. In this context, negotiations with FIMI Opportunity Funds, an Israeli financial investor, for the assumption of the obligations under these special rights are well advanced. The completion of the transaction would require additional regulatory approvals and the consent of the shareholders’ meeting of ZIM."
There is more analyis on Splash24/7 as well
