The Israeli shipping giant ZIM will be sold to a German-Israeli partnership comprising Hapag-Lloyd and FIMI Opportunity Funds for approximately $4.2 billion, the Israeli business news site Calcalist reported on Sunday.
According to the report, the German firm, which is currently the world’s fifth-largest shipping company, will acquire ZIM’s international operations, while FIMI will take charge of local Israeli operations.
Under the deal, Hapag-Lloyd will begin operating ZIM’s 99 chartered ships, while FIMI will take ownership of the 16 Israeli-flagged vessels currently operated by ZIM.
The inclusion of FIMI as an Israeli partner was intended to bypass the “golden share” owned by the Israeli government, which would have likely vetoed a fully international takeover.
According to a report by Globes, the acquisition was initially expected to be valued at $3 billion, slightly above ZIM’s current $2.7 billion market value. Calcalist reported that the ZIM board has since approved the $4.2 billion price tag.
Globes also noted that both employees and political officials have opposed the deal, with the workers’ committee stating it was surprised to learn the deal had closed.
Haifa Mayor Yona Yahav also opposed the move, telling Globes that “ZIM Shipping Company, headquartered in Haifa, is no longer part of the Israeli economy.”
“This is a company whose existence is of strategic significance to the economy and security of the State of Israel, and which has thousands of employees – a large part of whom live in Haifa. The transfer of its ownership to foreign hands, even if an Israeli investment fund is involved, is problematic to say the least and harms national security, and could also lead to the dismissal of thousands of workers,” he explained.
“I demand that the Israeli government stop the move and prevent the sale – it is impossible for the State of Israel not to have a shipping company in Israeli hands, it is part of its economic and security existence,” he added.
A December report by Globes regarding a potential sale also met strong opposition from ZIM workers and Israeli political figures, but the Calcalist report suggests these differences may have been resolved.