Zim board approves $4.2 billion sale to Hapag-Lloyd and FIMI
German shipping giant wins tender over Maersk; new “Zim Israel” to retain 16 owned vessels under FIMI control.
Zim’s board of directors approved on Sunday evening the sale of the company to German shipping giant Hapag-Lloyd and the FIMI fund, Calcalist has learned.
Hapag-Lloyd will acquire Zim in a deal valued at $4.2 billion. Concurrently, Zim will sign an agreement with the FIMI fund to sell a portion of its assets, which will form the basis of a new company to be called “Zim Israel.”
Under the structure of the deal, Zim Israel, to be held by FIMI, will own the 16 vessels currently owned by Zim. Hapag-Lloyd, meanwhile, will assume control of the 99 chartered vessels currently operated by the company.
The new FIMI-controlled company will focus on shipping routes operated by medium-sized vessels between the Mediterranean region and key destinations in the Far East and the United States.
Hapag-Lloyd, the world’s fifth-largest container shipping company by volume, won the tender over Danish giant Maersk, the world’s second-largest shipping company in the sector.
During the tender process, Hapag-Lloyd decided to include an Israeli partner in the transaction, primarily to address the implications of the golden share held by the State of Israel in Zim. To that end, it partnered with the FIMI fund.
Zim is currently trading at a market capitalization of approximately $2.7 billion.
Hapag-Lloyd will acquire the company’s international activities, which are not subject to Israeli regulatory restrictions. FIMI will acquire the Israeli operations that fall under the provisions of the state’s golden share.
The international operations constitute the majority of Zim’s business, and Hapag-Lloyd will therefore invest most of the capital in the transaction.
The structure is designed to resolve the constraints imposed by the golden share, which prevents exclusive foreign ownership of a company deemed strategic or essential to Israel. This issue is particularly sensitive given that Hapag-Lloyd has shareholders from Saudi Arabia (10.2%) and Qatar (12.3%) through sovereign investment arms.
Under the agreed framework, FIMI will acquire the activities defined as strategic assets for the State of Israel. This includes a fleet of 16 fully owned vessels, those flying the Israeli flag and those subject to potential nationalization or emergency mobilization orders. These ships have been described by the company’s workers’ union, headed by Oren Caspi, as vessels capable of transporting ammunition, military equipment and essential goods at times when foreign shipping companies halt calls to Israeli ports.
FIMI will also acquire Zim’s national shipping lines to and from Israel, the company’s headquarters in Haifa, its computer systems, and Israeli human resource management, including Israeli naval officers, all requirements under the golden share. It will assume responsibility for compliance with the Ministry of Transportation and the Ministry of Defense.
Golden share provisions require maintaining a minimum number of Israeli-owned ships to ensure maritime continuity during wartime, when foreign vessels may not dock in Israel. They also mandate that management headquarters remain in Israel.
Hapag-Lloyd, traded on the Frankfurt Stock Exchange at a market value of approximately €20 billion, is pursuing the acquisition as part of its strategy to increase global market share, particularly on routes from the Far East to the U.S. East Coast. Zim is currently ranked as the tenth-largest container shipping company globally.
