Shares of Israeli container shipping line ZIM Integrated Shipping Services have come under pressure amid growing investor concerns that the government may intervene to block a potential sale of the company to foreign buyers, capital-market sources said.
The concerns center on the Ministry of Transportation and intensified this week after ZIM Workers’ Union chairman Oren Caspi met Transportation Minister Miri Regev, conveying employees’ strong opposition to a foreign acquisition. The union argues that a sale to overseas interests—particularly Saudi or Qatari entities—could pose a national-security risk and undermine Israel’s supply chain by giving foreign actors indirect influence over what it calls the country’s maritime lifeline.
According to the union, ZIM was the only shipping company that maintained regular service to Israel during periods of war, including the “Swords of Iron” conflict, delivering food, medicine, ammunition and critical military equipment. The workers also note that around 98% of Israel’s trade, by weight, relies on maritime transport, and warn that foreign control could leave the country vulnerable in times of crisis. ZIM directly employs about 1,000 workers in Israel.
Shipping-industry sources, however, dispute parts of the union’s claim, noting that Germany’s Hapag-Lloyd also continued calling at Israeli ports during the war and transported goods to Israel. Industry estimates suggest that, beyond security concerns, employees are also worried about possible layoffs and the relocation of ZIM’s headquarters abroad if the company is acquired by a foreign buyer.
On that basis, the union is demanding that the state use the special powers attached to its golden share in ZIM to prevent a sale to foreign entities. Minister Regev has expressed sympathy with the workers’ concerns and, according to sources familiar with the matter, pledged to raise the issue for discussion at the cabinet level. However, the sale of ZIM was not discussed at Thursday evening’s cabinet meeting, which Regev attended only in part due to other commitments.
ZIM is currently in the midst of a structured sale process led by investment bank Evercore. The process was launched several months ago after a bid by ZIM CEO Eli Glickman, together with Rami Ungar—Kia’s importer to Israel and owner of Ray Shipping—was rejected by the board as being lower than the company’s cash holdings. Following that decision, the board opted to seek acquisition offers through an orderly process.
At this stage, the leading bidders are believed to be MSC and Hapag-Lloyd. Industry sources say Glickman and Ungar may yet return with an improved offer and have not made their final move. Should they ultimately succeed in acquiring ZIM, estimates suggest that employees would be unlikely to face adverse consequences.
Meanwhile, ZIM’s board is preparing for a shareholder vote scheduled for next week on the election of a new board of directors. A group of Israeli shareholders—including More Gemel, Reading Capital, and Sparta, owned by Alon Gonen, founder of fintech firm Plus500—has nominated three new board candidates, despite their limited experience in the shipping sector. The group, which holds about 8% of ZIM’s shares, is seeking to rally additional Israeli institutional investors to support its slate, with the aim of replacing the current board chaired by Yair Seroussi, former chairman of Bank Hapoalim.
The convergence of labor opposition, political sensitivity and shareholder activism is adding uncertainty to ZIM’s sale process, heightening market volatility as investors await clarity on the company’s future ownership and governance.
