Several Israeli government agencies are working together to prevent a massive shipping company acquisition, citing national security threats and concerns about the country’s ability to maintain essential supply routes during crises, according to reports from Calcalist.
The ministries of Economy, Agriculture and Transport, along with the Shipping and Ports Authority, are opposing the planned acquisition of ZIM by German shipping company Hapag-Lloyd and the FIMI fund for $4.2 billion.
The contested acquisition received approval from ZIM shareholders in late April. The deal values the company at approximately $1 billion more than its current trading price on Wall Street and would result in ZIM being removed from public trading.
According to the acquisition terms, Hapag-Lloyd would assume control over ZIM’s global operations, while FIMI fund, led by Ishay Davidi, would oversee the company’s domestic Israeli activities.
Government authorities have expressed strong disapproval of the plan to split the company’s operations. The Ministry of Economy released a statement expressing concern that the structure “raises concerns that the framework would create a crippled company incapable of surviving independently from a business and operational standpoint.”
The ministry also cautioned that what remains of the Israeli operations would become “a tiny operational shell disconnected from the global logistics network.”
Those opposing the deal maintain that handing over the majority of ZIM’s operations to an international entity would diminish Israel’s maritime transport capabilities and compromise the nation’s ability to respond effectively during future emergencies. Government representatives argue the arrangement would establish a smaller domestic shipping operation designed to meet state ownership requirements while significantly diminishing operational effectiveness.
Government agencies have also raised red flags about Hapag-Lloyd’s investor base, pointing out that Qatar and Saudi Arabia maintain ownership stakes in the German company.
“The assumption that the State of Israel could rely during a national emergency on a shipping company whose significant shareholders include countries with interests that are opposed or hostile to Israel is completely detached from strategic reality,” the Ministry of the Economy wrote.
Government representatives have emphasized ZIM’s critical importance in serving Israeli markets, noting that the company handles approximately one-third of all food products shipped by sea into the country.
The ministry issued an additional warning that “during a security crisis, when foreign companies may reduce their activity in Israeli ports, the state could find itself struggling to import essential raw materials for industry, basic consumer goods, and other products transported by sea.”
