Zim Lifts Q2 Revenue to $1.8bn as Hapag Merger Meets Regulators
Brazil's CADE opens a full investigation that could run to March 2027
Israeli container carrier Zim reported second-quarter revenue of $1.8 billion, up nine percent year on year, with net income of approximately $64 million and EBITDA near $500 million. The result was carried by higher volumes in Asian and transpacific markets alongside firmer freight rates.
The shares nonetheless fell four percent in early trading, on news that Brazil's competition authority, CADE, is carrying out a full investigation of the proposed $4.2 billion merger with Hapag-Lloyd. Regulators there can extend their review until March 2027, which would push the deal beyond the completion target the two companies have set for 2026.
The transaction faces a second set of obstacles at home. A majority of Israeli government ministries are expected to oppose the merger, including the ministries for shipping, economy and defense. The objection centres on the arrangement leaving the small Israeli component of Zim under FIMI, a concentration that Israeli officials argue could undermine national logistical capability and the resilience of supply chains against possible sanctions.
Under the proposed structure, Hapag-Lloyd would take most of the global operations while FIMI retains the Israel-focused routes and 16 owned vessels, preserving the carrier's strategic national role.
The gap between the operating result and the share reaction is the story of the quarter. Zim is trading well, but the value of the equity now turns on a regulatory calendar it does not control, in two jurisdictions with different reasons for caution.
A review that runs to March 2027 in Brazil would leave the merger open through another full contract season, with the Israeli ministries able to press their case throughout.
