Hapag-Lloyd prepares improved $4.2 billion offer to buy ZIM
German shipping group Hapag-Lloyd, together with the Israeli government, is working on improving its offer to acquire Israeli company ZIM Integrated Shipping Services for $4.2 billion in cash. The proposed deal has sparked opposition in Israel, including from ZIM employees, Israeli Defence Minister Israel Katz and other officials, who believe that transferring the shipping company to a foreign owner threatens national security.
Reviewing the deal terms
As The Jerusalem Post reports, Hapag-Lloyd CEO Rolf Habben Jansen said the company is developing an improved offer designed to strengthen Israel's maritime security and independence. According to him, the revised terms should guarantee Israel access to key sea routes, including routes from Asia.
Hapag-Lloyd held several rounds of talks with representatives of Israel's Economy, Finance and Defence ministries. The parties discussed changes to the structural elements of the proposed acquisition. The updated offer is expected to be submitted for consideration by the Israeli cabinet later this month.
More current news is available on the UA.News Telegram channel Telegram.
The role of the FIMI fund
Under Hapag-Lloyd's plan, ZIM is to become a container shipping company under full Israeli control, owned by the Israeli private equity fund FIMI. In a separate agreement, FIMI plans to acquire a business spun off from ZIM with 16 vessels and establish a new company, ZIM Israel, which will provide direct global maritime connections for Israel.
Israel holds a so-called golden share in ZIM, giving the state special ownership rights. Hapag-Lloyd has also proposed lowering from 24% to 10% the ownership threshold that a single foreign investor may acquire without prior notification to the government. FIMI, for its part, has pledged not to list ZIM Israel shares for trading outside the Israeli stock market.
Employees' objections
Oren Caspi, chairman of ZIM's employees' committee, said he continues to oppose the deal. According to him, the company should not be transferred to parties he called hostile. Hapag-Lloyd also said the participants had agreed to strengthen shipping connections between Israel and Asia at the request of the Israeli authorities.
