Reports: Israel’s ZIM to be sold to German shipping giant Hapag-Lloyd for over $3 billion

Illustrative: A ZIM container ship at the Haifa port, November 14, 2011. (Yaakov Naumi/Flash90)
Illustrative: A ZIM container ship at the Haifa port, November 14, 2011. (Yaakov Naumi/Flash90)

Israel’s ZIM will be sold to German shipping giant Hapag-Lloyd in a deal worth over $3 billion, Hebrew-language media reports.

The deal, which has been under discussion for some six months, involves Israeli private equity firm FIMI, the Calcalist financial newspaper reports.

The newspaper says the parties have agreed on the details of the deal, which is expected to be signed soon.

According to Calcalist, Hapag-Lloyd will purchase all of ZIM’s shares, leading to the Israeli firm’s delisting from the New York Stock Exchange.

The newspaper says the agreement is slightly unconventional, in that Hapag-Lloyd will take over the international operations while FIMI will control ZIM’s Israeli operations, rather than a more standard equity partnership.

The Globes financial newspaper says that workers unions are expected to meet with management in the coming hours after they were “surprised” to hear about the closing of the deal. According to Globes, there is a possibility of industrial action.

The Israeli government holds a so-called “golden share” in ZIM, giving it special rights.

According to Calcalist, the golden share provision in this case means that ZIM’s management must stay in Israel and a certain number of ships must remain Israeli-owned to ensure maritime traffic continues even in times of war.

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