Hapag-Lloyd completes $4.2 billion cash deal for Zim
German shipping giant closes landmark acquisition as FIMI takes over Israeli operations.
The $4.2 billion sale of shipping giant Zim was signed today in Tel Aviv. A delegation of senior executives from German shipping company Hapag-Lloyd, led by CEO Rolf Habben Jansen, arrived in Israel to formalize the agreement.
Following the signing, Hapag-Lloyd is expected to hold an online press conference with Israeli and German reporters to outline its plans for managing the company and to address concerns in Israel over the transfer of a strategic national asset to foreign ownership. The price per share of $35 represents a 58% premium to Zim's stock price on Friday.
As part of the transaction, Hapag-Lloyd will sell Zim’s Israeli operations to the FIMI private equity fund. FIMI founder and CEO Ishay Davidi said: “FIMI recognizes and believes in the strategic importance to the State of Israel of maintaining an independent and strong Israeli shipping company. We are establishing a stable Israeli company - the new Zim - and view Hapag-Lloyd as a significant strategic partner in continuing its operations.
“We intend to build an advanced and efficient fleet with broad logistics capabilities. We see this as a strategic opportunity to establish a strong, focused Israeli shipping company with financial strength, operating in cooperation with one of the world’s leading shipping companies.
“The new Zim will combine substantial transatlantic capabilities with additional routes to Europe, Africa, the Mediterranean and the Black Sea. It will rely on advanced maritime transport technologies while placing customers at the center of its operations. FIMI intends to leverage its experience and capabilities to lead the new Zim toward operational stability and uncompromising quality, with a deep commitment to employees, suppliers and customers.”
Ahead of the signing, Zim temporarily suspended its operations. No meetings were held today between management and the workers’ union after talks broke down yesterday. The union, headed by Oren Caspi, rejected proposals presented by board representatives, including director Nir Epstein and attorney Ariel Aminach of the Meitar law firm.
According to the union, it was informed that only about 120 employees would remain at the new Zim under FIMI’s ownership. Hapag-Lloyd is expected to establish an R&D center in Israel that would absorb Zim’s technology employees, and some of the remaining 800 employees may be integrated into that operation.
