German shipping group Hapag-Lloyd said it is working with the Israeli government to improve its proposed all-cash offer to acquire the integrated shipping services company ZIM, a deal valued at $4.2 billion.
Domestic opposition to the deal
The proposed deal has faced strong opposition in Israel — including from ZIM employees, Defence Minister Israel Katz and other government officials — who argued that it would undermine national security by transferring Israel's shipping sector to a foreign company.
An improved offer focused on maritime security
"We are currently working on an improved proposal aimed at further strengthening Israel's maritime security and independence," said Rolf Habben Jansen, Hapag-Lloyd's Chief Executive.
He added in a statement: "The revised proposal will guarantee Israel's access to key shipping routes, including those coming from Asia."
Hapag-Lloyd, which is seeking to cement its position as the world's fifth-largest shipping group, said the agreement would stipulate that ZIM remain a fully Israeli-controlled container shipping company, owned by the Israeli direct-investment fund (Fimi).
A parallel deal: "ZIM Israel"
In a related transaction, the Fimi fund plans to acquire a business comprising 16 vessels carved out of ZIM, ensuring Israel retains direct global maritime links through a new company called (ZIM Israel).
Government meetings and a cabinet review
Hapag-Lloyd said it had held meetings with Israeli officials — including representatives from the ministries of economy, finance and defence — to "review the structural elements of the proposed acquisition," which is expected to be presented to the Israeli cabinet this month.
