The 145 questions holding up Zim's $4.2 billion acquisition
As government agencies debate the sale to Hapag-Lloyd and FIMI, unanswered security concerns are delaying a decision.
Zim shares fell 7% in early trading on the New York Stock Exchange after Prime Minister Benjamin Netanyahu responded to remarks by MK Almog Cohen and a decision by Defense Minister Israel Katz, who announced that the Defense Ministry Director of Security, the security body within the defense establishment, opposes the sale of Zim to German shipping giant Hapag-Lloyd and Israeli private equity fund FIMI for $4.2 billion.
Katz announced earlier this week that he had adopted the position that concluded that the transaction does not align with Israel's national security interests. The assessment itself has not been made public, but Katz disclosed the opposition in a statement to the media.
"This does not close the issue, but it certainly makes the situation for the deal more difficult," said a source familiar with the transaction.
The timing of the announcement is notable. Zim and the buyers are currently preparing responses to a 145-question document submitted by the Government Companies Authority, which includes several issues disclosed here for the first time. The questions were transferred through the Prime Minister's Office after six previous rounds of questions and answers between the authority, Zim, Hapag-Lloyd, and FIMI, at the request of the government bodies responsible for approving the transaction.
The document, obtained by Calcalist, includes questions regarding the scope of security-related shipments handled by Zim over the past year, as well as possible sanctions that could be imposed on Hapag-Lloyd if it violates commitments made to Israel.
The answers are still being prepared by the lawyers and professional advisers accompanying the deal. More than a month after the questions were submitted, the responses do not appear to be close to completion.
On the other side of the dispute are Zim's workers' union and the naval officers' union. The two groups maintain close ties, and sources involved in the transaction claim that both committees have significant influence among members of the Likud Central Committee, who can exert pressure on senior party officials.
Zim workers' union chairman Oren Caspi rejected the claim, saying the opposition to the deal is based solely on security considerations.
"This quote came from the primaries, and it is not true. Zim and the buyers have not yet answered the questions sent to them, so how can we formulate a position paper?" said a source involved in the transaction.
If the government ultimately decides that the deal should not be approved, it would represent a major setback for the transaction, and this uncertainty has already weighed on Zim's market value. Following the decline in the share price, the company's market capitalization fell below $3 billion, significantly below the $4.2 billion acquisition price.
However, people close to the deal say it is difficult to separate the security debate from the political context surrounding the statements by Netanyahu and Katz.
Some parties involved in the transaction believe the process of answering the questions is being intentionally delayed in order to push the decision beyond the November elections, leaving the final decision to a future government that may evaluate the deal in a less political environment.
FIMI founder and CEO Ishay Davidi has been identified in recent years with opposition to Netanyahu's government. He was a prominent member of the business forum that opposed the judicial overhaul, and in recent days, Likud Central Committee WhatsApp groups have circulated information regarding a NIS 540,000 campaign donation made by his wife, Shira Davidi, to the election campaign of Gadi Eisenkot, one of Netanyahu's political rivals.
Although no one has publicly linked these issues directly to the Zim transaction, sources close to the deal do not rule out the possibility that political considerations could become a more explicit factor in the debate.
If internal Likud politics are influencing ministers' positions on the transaction, sources involved in the deal believe approval under the current government could become increasingly unlikely.
At the same time, the professional ranks of several government ministries have also raised objections to the transaction. Officials at the Economy Ministry, Agriculture Ministry, and Transportation Ministry, through the Shipping and Ports Authority, have submitted detailed documents opposing the deal for various reasons.
Still, supporters of the transaction have raised a fundamental question:
"If everyone already opposes the deal, why were 145 questions sent to us? And if questions were submitted, why not wait for the answers before reaching a conclusion?"
The transaction was announced in February, under which Zim would be sold for $4.2 billion to Hapag-Lloyd and FIMI.
FIMI would acquire Zim's Israeli operations, which would be separated from the international company and operate as a new entity called Zim Israel. In meetings with industry representatives, FIMI presented the structure as an advantage compared with the current situation, emphasizing that the new company would have no debt and would operate a fleet of 12 new vessels.
Davidi has previously argued that the current structure does not necessarily protect Israel from foreign influence, warning that hostile entities could theoretically acquire significant stakes in Zim through the stock market.
"We heard a senior official from the Defense Ministry Director of Security say in a meeting with us and the Companies Authority that the deal was a 'dream,'" said a source from the purchasing group.
Another source close to the buyers sharply criticized the Government Companies Authority and other government bodies, claiming that representatives of the purchasing group were denied the opportunity to meet with all relevant professional officials to explain the security advantages of the transaction.
"We were scheduled for three meetings with professionals, but they were canceled, some until we answered the questions. These are complex questions that require time. We are conducting the necessary reviews and want to provide complete answers. We are still at the beginning of the process, so it is difficult to understand how positions are being formed before we have even responded."
The purchasing group rejected claims that it is delaying responses in order to postpone the decision until after the elections.
Meanwhile, market estimates are increasingly suggesting that regardless of the final outcome, the decision on whether to approve or reject the transaction, given the state's golden share in Zim, is unlikely to be made during 2026.
