Hapag-Lloyd, FIMI Funds ink $4.2 billion deal to buy Israel’s Zim

German shipping giant Hapag-Lloyd and Israeli private equity fund FIMI Opportunity Funds sign an agreement to acquire the Haifa-based shipping giant Zim Integrated Shipping Services in a deal worth $4.2 billion.

Hapag-Lloyd will buy 100% of Zim’s shares for a consideration of $35 per share in cash. The acquisition will secure Hapag-Lloyd’s market position as the fifth-largest container shipping company worldwide with a fleet of more than 400 vessels. As part of the deal, FIMI will control Zim’s Israel operations.

“Zim is an excellent partner for Hapag-Lloyd,” says Hapag-Lloyd CEO Rolf Habben Jansen. “We will use this opportunity to create the best team from the exceptional talent in ZIM and Hapag-Lloyd – in Israel and around the globe – and we commit ourselves to build a very substantial and long-term presence in Israel.”

Under the terms of the agreement, Israel’s FIMI Opportunity Funds will take ownership of a “carved-out container liner business that will serve some of the most important strategic trade-lanes, seamlessly connect to the global network of Hapag-Lloyd and in combination enhance and secure the global maritime connectivity for the State of Israel.”

“FIMI recognizes and believes in the strategic importance for the State of Israel of a strong independent Israeli shipping company,” says FIMI Funds founder and CEO Ishay Davidi. “We will create a stable Israeli company, the new Zim, and view Hapag-Lloyd as a significant strategic partner for its ongoing operations.”

The Israeli government holds a so-called “golden share” in Zim, giving it special rights to require Zim to maintain a presence in Israel, including a certain number of vessels that must remain Israeli-owned to ensure maritime traffic continues even in times of war.

The completion of the transaction is subject to approval by Zim’s shareholders and the relevant regulatory authorities, among other conditions.