Hapag-Lloyd CEO to visit Israel as buyers prepare revised $4.2 billion Zim bid
Rolf Habben-Jansen is arriving ahead of a new proposal aimed at overcoming opposition from six of the eight government bodies reviewing the deal.
Rolf Habben-Jansen, CEO of German shipping company Hapag-Lloyd, is set to arrive in Israel on Wednesday as the company and Israeli private equity fund FIMI prepare a revised proposal aimed at securing government approval for their $4.2 billion acquisition of Zim, Calcalist has learned.
Habben-Jansen’s visit comes ahead of a new proposal that the buyers are expected to submit on Sunday. The revised offer will include significant changes intended to address objections raised by the Government Companies Authority, the Israel Shipping and Ports Authority and other government bodies, including the Ministry of Defense.
Six of the eight government bodies whose positions are required before the state can approve the transfer of its golden share in Zim currently oppose the transaction. The central concern is that the proposed structure would significantly reduce Zim’s access to international shipping routes, potentially weakening the company’s ability to maintain maritime connections during a regional crisis.
Another concern raised by professional and government officials is the financial strength of “Zim Israel,” the separate company that FIMI would control under the proposed transaction. Officials have argued that the new company would be relatively small and would remain dependent on Hapag-Lloyd for significant parts of its operations.
Zim currently operates a fleet of 130 vessels, including chartered ships, and serves 55 shipping routes. Under the proposed transaction, FIMI would receive 16 vessels to form the core of Zim Israel. The state does not object to the transfer of those ships.
The dispute is instead focused largely on the three shipping routes that would initially remain with Zim Israel. Two serve Greece and one serves the United States.
The state is seeking a much broader network. According to sources familiar with the discussions, it wants Zim Israel to retain access to at least six routes, and potentially as many as 10. At least one route to the Far East is considered essential.
The objective is to ensure that Israel retains access to international shipping during a regional emergency, when foreign carriers could reduce or suspend service to Israeli ports. The government has argued that simply transferring 16 ships to Zim Israel is not enough if the company does not have sufficient access to international routes and markets.
The route issue has become one of the main obstacles to the deal, which was approved by Zim shareholders earlier this year but has yet to receive the necessary Israeli regulatory approvals. Under the transaction, Hapag-Lloyd would acquire Zim’s international operations, while FIMI would establish and control Zim Israel, which would hold the Israeli strategic assets subject to the state’s golden share.
The buyers have already agreed to several changes in response to the government’s concerns. Among them are tighter restrictions on foreign ownership of Zim Israel and greater state control over the new Israeli company. The buyers have also committed to strengthening shipping connections between Israel and destinations in Asia.
