“The sale of Zim to foreign ownership should not be allowed”
Former National Security Council head Maj. Gen. (res.) Giora Eiland warns the $4.2 billion deal with Hapag-Lloyd and FIMI could undermine Israel’s strategic shipping capacity and maritime workforce. Zim employees submitted Eiland's opinion to relevant government ministries, although he has since requested to review it after FIMI presented several arguments he wished to examine.
The proposed sale of Zim to Germany’s Hapag-Lloyd and Israel’s FIMI fund continues to face mounting resistance.
On Tuesday, company employees submitted an opinion to relevant government ministries prepared by Maj. Gen. (res.) Giora Eiland, warning of the deal’s strategic and economic implications. However, Eiland has since withdrawn his report pending further review.
A separate opinion, submitted on behalf of the Naval Officers’ Union, also raises concerns about the structure of the deal, the future of Israel’s maritime workforce, and the country’s ability to rely on Zim in times of emergency. The objections come amid a broader regulatory and political struggle over whether the transaction should be approved.
“The implementation of a sale transaction for Zim, which includes transferring most of the company to foreign ownership, should not be allowed,” Eiland wrote in his initial opinion.
Speaking yesterday, Eiland said he had paused his conclusions after FIMI presented several arguments he wished to examine. “Since the company became public, it is theoretically impossible to prevent a takeover by foreign or even hostile parties,” he said. “For the same reason, the Israeli government has no practical ability to change the terms of the golden share, even if such changes are warranted. Therefore, according to FIMI, the correct comparison is not between the current situation and its proposal, but between its proposal and potentially worse outcomes in the future. As far as I am concerned, the security need remains unchanged, but I will review these issues and present a final opinion next week.”
At the same time, the Naval Officers’ Union warned that key elements of the proposed structure remain unclear. “As long as the business relationships and obligations between FIMI, as the intended owner of the ‘new Zim,’ and Hapag-Lloyd have not been fully clarified, particularly regarding subsidy mechanisms, fleet renewal reserves, and long-term transport agreements, this appears to be a move that does not provide a complete economic or strategic solution,” the union said.
According to the union, there is concern that the “new Zim” could serve merely as a formal mechanism to satisfy the requirements of the golden share, without addressing Israel’s long-term strategic maritime needs.
The $4.2 billion acquisition, under which Hapag-Lloyd and FIMI would purchase shares from existing shareholders, requires government approval. FIMI is working to address criticism from regulators and political figures, including the Competition Authority and Transport Minister Miri Regev.
Eiland, a former head of Israel’s National Security Council, has spent nearly two decades in the defense sector. In his draft opinion, he argued that even if the “new Zim” retains 16 ships, exceeding the requirements of the golden share, significant risks remain.
“The majority of Zim’s assets that would be transferred to Hapag-Lloyd will effectively be lost to Israel’s ability to utilize them in an emergency,” he wrote. “Some shareholders in Hapag-Lloyd include Qatari and Saudi entities, whose interests do not necessarily align with those of Israel. Meanwhile, the Israeli Zim would remain a small entity, raising serious doubts about its ability to sustain sufficient operational scale.”
He also argued that the government should update the conditions of Zim’s golden share, which were set three decades ago. “If the government were to define these conditions today, they would likely be far stricter,” he said.
Eiland added that Israel’s reliance on maritime supply routes makes it particularly vulnerable in times of crisis, when disruptions to shipping could severely impact the transport of essential goods and people.
The Naval Officers’ Union highlighted an additional concern: Zim’s role as a cornerstone of Israel’s maritime workforce. “The officers employed on Zim ships constitute the professional backbone of Israeli shipping,” the union said. “Any weakening of the company directly affects employment, training, and the reserve of skilled maritime personnel.”
The union noted that workforce reductions following previous debt restructurings have already led to a shortage of qualified personnel. It also warned that the “new Zim” would operate in a highly competitive Mediterranean market under structural disadvantages.
“In practice, this activity, operating without access to certain regional ports due to political constraints, faces a significant disadvantage compared to major shipping lines,” the union said. “Without internal support mechanisms or long-term agreements with the German parent company, serious questions arise regarding its ability to operate independently over time.”
