Finance Ministry objects to proposed sale of Israel’s Zim shipping company to German line Hapag-Lloyd

Israel’s Finance Ministry submits a formal objection to the proposed $4.2 billion sale of Israel ‘s Zim Integrated Shipping Services to German shipping line Hapag-Lloyd, citing concerns over national security and maritime independence.

“The transaction should not be approved in its current framework as the risks inherent in the deal as currently structured outweigh its benefits,” the Finance Ministry says in a position paper. “As those responsible for government policy, it is our duty to ensure that any such transaction safeguards Israel’s vital interests, specifically regarding the long-term financial stability of Zim Israel and eliminates dependence on entities hostile to the State of Israel.”

Among Hapag-Lloyd’s shareholders are Qatar Holding, a subsidiary of Qatar’s sovereign wealth fund, which owns a 12.3% stake, and Saudi Arabia’s Public Investment Fund, which has a 10.2% stake.

The Finance Ministry joins a list of political leaders, including Defense Minister Israel Katz, as well as government ministries, raising red flags over the German shipping firm’s Gulf backers and concerns that non-Israeli owners could leave the country without vital strategic lifelines.

The Treasury’s objection comes after Hapag-Lloyd chief executive Rolf Habben Jansen traveled to Israel last week and presented revised terms to the government hoping to overcome objections and salvage the deal for Israel’s Zim freighter service.