Hapag-Lloyd Pushes Israel to Reconsider Improved $4.2 Billion Bid for ZIM

Hapag-Lloyd urged Israeli authorities to review the improved terms of its $4.2 billion offer to acquire ZIM Integrated Shipping Services, after Israel's Ministry of Finance stated that the deal should not be approved. The German carrier argued that this position did not reflect the substantial improvements presented the previous week, including a direct route to Asia, domestic shipping operations for the new ZIM Israel, investment in Israeli seafarers, additional safeguards for the country's transport needs, and stronger protection of the state's golden share in ZIM. The company said it remained focused on closing the transaction before year-end.

A few days later, Israel's Government Companies Authority (GCA), responsible for managing the state's golden share in ZIM, reported that it had stopped processing the request related to the deal because it had not received a revised proposal on the company's post-closing operations within the set deadline. The original approval request had been submitted in March 2026, and the letter from Hapag-Lloyd and its Israeli partner FIMI announcing their intention to submit changes arrived in September. The GCA clarified that the parties would need to submit a complete proposal if they wish for a new review of the merger or of the state's special share.

Various sectors in Israel, including government bodies and the union representing much of ZIM's workforce, expressed their rejection of the deal. Among the objections are the stakes held by the sovereign wealth funds of Qatar (12.3%) and Saudi Arabia (10.2%) in Hapag-Lloyd, ZIM Israel's ability to meet the country's strategic logistics needs, and the new company's operational dependence on the German carrier. The Ministry of Finance also cited the aging fleet, the loss of economies of scale from separating from the rest of ZIM's vessels, and financial projections it considers overly optimistic.

Israel's Ministry of Economy, headed by Minister Nir Barkat, began reconsidering its opposition following the restructured proposal, according to a report by Alphaliner, with a new meeting scheduled for the first full week of October. The revised offer would include ten improvements, among them a weekly route to the Far East that would add a third trade lane to the Atlantic and Mediterranean services, a larger minimum fleet, and double the number of refrigerated containers to ensure food supply in emergencies. The plan is projected to generate a $1.7 billion revenue increase over ten years and an additional $200 million in net profit, along with labor guarantees including no layoffs before the end of 2027. ZIM shares closed at $30, below the $35 per share offered in the acquisition proposal.

On October 2, Hapag-Lloyd CEO Rolf Habben Jansen stated that the objections from the Ministry of Finance and the GCA were directed at the original proposal and did not take into account the improvements introduced together with FIMI, and announced that he would present and explain the revised plan to Israeli authorities in the coming weeks. The GCA's decision to halt the review of the original structure means the process will have to start over. Adding to this is a demand from a group of shareholders representing more than 10% of ZIM's shares, who called for a new vote if the revised agreement turns out to be materially different from the one previously approved by shareholders, although it was not established that Israeli law or the merger agreement legally require a second vote.