Israel’s ZIM shipping sold to Germany’s Hapag-Lloyd for $3.7 billion

“Transferring its ownership to foreign hands, even if an Israeli investment fund is involved, is problematic to say the least and harms national security, and could also lead to the dismissal of thousands of workers.”

By Pesach Benson, TPS

The Israeli shipping company ZIM is set to change hands, with Germany’s Hapag-Lloyd and the Israeli investment fund FIMI jointly acquiring the company in a deal valued at approximately $3.7 billion, Israeli officials announced Sunday.

The agreement follows a six-month tender process, during which ZIM sought buyers for the company, which is publicly traded on the New York Stock Exchange.

Following the sale, ZIM is expected to be delisted.

Under the terms of the deal, Hapag-Lloyd will take control of ZIM’s global operations, including 99 leased ships, international shipping routes, marketing networks, and technology platforms.

FIMI will oversee a “new ZIM” company, maintaining ownership of 16 Israeli-flagged ships, direct routes to Israel, and the company headquarters in Haifa.

FIMI’s role is also meant to preserve Israel’s strategic interests.

In times of conflict, the fund is required to ensure that the country can mobilize ships to transport essential goods such as ammunition, wheat, and fuel.

The sale represents a significant premium over ZIM’s current market value of around $2.7 billion.

Officials said the joint bid from Hapag-Lloyd and FIMI was among several offers received and has now reached the final stages of approval.

Despite the deal’s strategic planning, the sale has drawn sharp criticism from Haifa Mayor Yona Yahav, who warned of both economic and national security implications.

“ZIM is no longer a company in the Israeli economy. This is a company whose existence has strategic significance for the economy and security of the State of Israel, and employs thousands of workers—a large part of whom live in Haifa,” Yahav said.

“Transferring its ownership to foreign hands, even if an Israeli investment fund is involved, is problematic to say the least and harms national security, and could also lead to the dismissal of thousands of workers. I demand that the Israeli government stop the move and prevent the sale—it is impossible for the State of Israel not to have a shipping company in Israeli hands. It is part of its economic and security existence.”

The Israeli government holds a “golden share” in ZIM, which is intended to allow the state to intervene in emergencies, similar to arrangements with national airline El Al. Hapag-Lloyd itself is partially owned by foreign sovereign wealth funds, including Qatar (12.3%) and Saudi Arabia (10.2%).

No government ministers have publicly opposed the transaction, and analysts expect the sale to close soon, marking a new chapter in the history of one of Israel’s most prominent shipping companies.