Hapag-Lloyd and FIMI to acquire Zim for over $3.5 billion
German shipping giant wins six-month tender, dividing Israeli carrier’s global and strategic assets to satisfy state “golden share.”
After a tender process that lasted about six months, the sale of Israeli shipping company Zim has reached the finish line. Calcalist has learned that German shipping giant Hapag-Lloyd won the tender and partnered with FIMI, Israel’s largest private equity fund managed by Ishay Davidi, to complete the acquisition.
The two parties have agreed on the details of the transaction, which is expected to be signed soon. As part of the deal, they will purchase 100% of ZIM’s shares, leading to its delisting from the New York Stock Exchange (NYSE), where it has traded since its 2021 IPO at a valuation of $1.5 billion.
The agreed valuation has not been disclosed but exceeds $3.5 billion. ZIM is currently trading at a market capitalization of approximately $2.7 billion.
Hapag-Lloyd, the world’s fifth-largest shipping company by container capacity, prevailed over Danish giant Maersk, the world’s second-largest shipping company. During the tender process, Hapag-Lloyd decided to add an Israeli partner to address regulatory complexities arising from the “golden share” held by the State of Israel in ZIM.
A key figure behind the deal is Samer Haj-Yehia, former chairman of Bank Leumi. He established the initial connection with Hapag-Lloyd on behalf of ZIM, later brought FIMI into the transaction, and advised on a structure that would satisfy regulatory requirements.
The structure of the acquisition is unconventional. Rather than forming a standard equity partnership, Hapag-Lloyd and FIMI will divide ZIM’s operations.
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.
Through the acquisition of ZIM’s Israeli operations, FIMI will effectively establish a new maritime transport company, to be called “New ZIM,” which will gain access to Hapag-Lloyd’s global network.
Hapag-Lloyd, for its part, will acquire the 99 leased vessels currently operated by ZIM, with lease contracts transferred to it, along with global trade routes that do not pass through Israel, including routes between China and the United States and intra-Asian lines.
The German company will also acquire ZIM’s international marketing and sales network, global agency network, international customer agreements, and the ZIM brand abroad. ZIM’s technology division, which develops digital solutions for the shipping industry, will also transfer to Hapag-Lloyd.
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.
ZIM’s workers’ union is aware of the agreed deal and is conducting negotiations with management, led by CEO Eli Glickman and Chairman Yair Seroussi, seeking a sale bonus for employees.
Glickman had previously attempted to acquire ZIM himself in partnership with Rami Unger, owner of Ray Shipping and Israel’s Kia importer, in a proposed management buyout valued at approximately $2.4 billion. The board rejected that offer about six months ago and instead launched a formal tender process.
The tender, managed by investment bank Evercore, attracted several international players in its non-binding phase. Some, including Swiss-based MSC, the world’s largest shipping company, did not proceed to the binding phase.
As of now, the State of Israel has not formally expressed a position on the transaction. Despite attempts by the workers’ union to generate opposition within government ministries, Transportation Minister Miri Regev, Defense Minister Israel Katz, Finance Minister Bezalel Smotrich, and Regional Cooperation Minister Dudi Amsalem, who oversees the Companies Authority, have not publicly objected.
The absence of resistance appears to stem, at least in part, from the inclusion of FIMI as an Israeli partner holding the strategic assets.
