Hapag-Lloyd Gets 30 Days to Rework Its Zim Bid for Israeli Approval
A revised proposal is expected by the end of September, with the golden share threshold cut to 10%
Hapag-Lloyd has received a 30-day extension from the Israeli authorities to rework its proposed acquisition of Zim, with a new proposal expected by the end of September. The German carrier said it will alter structural aspects of the deal to address concerns raised by multiple agencies.
The extension came as the government was due to issue its formal opinion after months of review. Under the golden share issued to the state when Zim went public in 2021, the government must approve any change of ownership, alongside requirements to maintain Israeli leadership of the company. Six of the eight ministries involved were reported to have been set to oppose the transaction, including Economy, Agriculture, Transport and probably Defence, with the state's Shipping Authority also against it.
An inter-agency meeting scheduled for August was delayed as that opposition grew, and was rescheduled for 9 September, leaving Hapag one further chance to present its case. Management said it had been meeting the government and understood the key concerns, which centre on access to international markets and foreign control, along with questions about the strength and long-term strategy of the new Zim Israel the deal would create.
The revised terms are aimed at what the carrier described as "strengthening Israel's maritime independence and security". Key concessions are reported to include a rewrite of the golden share governing the new Zim Israel, which would be owned by the investment fund FIMI. The proportion of shares that could be sold to foreign interests without triggering the golden share would fall from the current 24% to 10%, and FIMI would commit to listing shares of the new entity only on the Israeli stock exchange.
The companies have pointed to the shape of what would remain in Israeli hands. Zim Israel would emerge debt-free, take ownership of 16 ships against the 11 required under the current golden share, and focus on regional shipping to Israel. The revised proposal places all 16 vessels at the disposal of the government.
The structure being negotiated is closer to a carve-out than a straight acquisition: the international business passes to Hapag-Lloyd while a smaller, ring-fenced national carrier is created around the container ship tonnage the state wants kept under domestic control.
