Hapag-Lloyd and FIMI prepare a new structure for ZIM acquisition

Hapag-Lloyd and Israeli asset manager FIMI will submit a revised proposal to acquire shipping company ZIM by September 27. The restructuring follows meetings with Israeli government authorities and seeks to address concerns about the country's maritime security and the preservation of powers associated with the so-called Golden Share.

The new structure provides for Israel's container-shipping operation to be reestablished under full Israeli control and become owned by FIMI. The company would also assume expanded responsibilities related to the Golden Share, a mechanism that gives the Israeli government powers over strategic aspects of the company.

Among the announced changes is a reduction from 24% to 10% of the ownership threshold that a foreign private investor could acquire without notifying or obtaining authorization from the Israeli government. FIMI also committed not to list shares of the Israeli operation outside the country's market.

The revised design aims to expand the company's access to international routes, including a direct connection with the Far East, as well as incorporate capacity for refrigerated cargo and allow the use of Hapag-Lloyd's global container pool. The Israeli government would also have broader authority over the new operation, including access to the fleet of 16 vessels.

The original structure provided for three direct services: two to Greece and one to the United States. According to the information disclosed, Israeli authorities considered it necessary to expand the network to ensure independent access to international routes during a potential crisis. Six of the eight Israeli government bodies that were expected to issue opinions had expressed opposition to the transaction.

Hapag-Lloyd had agreed in February to buy ZIM for US$ 35 per share, in cash, giving the deal an approximate value of US$ 4.2 billion. ZIM shareholders approved the merger on April 30, but completion still depends on regulatory approvals and is expected by the end of 2026.

If completed, the combination will bring together a fleet of more than 400 ships, capacity above 3 million TEU, and annual transported volumes above 18 million TEU. Hapag-Lloyd estimates annual synergies of between US$ 300 million and US$ 500 million.