Hapag-Lloyd and Israeli private equity firm FIMI are preparing to revise their proposed $4.2 billion acquisition of ZIM following concerns raised by the Israeli government over maritime security and the future control of the country’s shipping operations.
Hapag-Lloyd CEO Rolf Habben Jansen said the revised proposal is intended to strengthen Israel’s maritime security and preserve access to key international shipping routes, including services from Asia. The original deal, announced in February, values ZIM at $35 per share in cash.
Under the proposed revised structure, ZIM would remain a fully Israeli-controlled container shipping company owned by FIMI. FIMI would also acquire a ZIM spin-off comprising 16 vessels to maintain direct international maritime connections through a new company, ZIM Israel.
The parties are considering tighter restrictions on foreign ownership, including reducing the foreign ownership threshold from 24% to 10%, while FIMI has indicated that ZIM Israel shares would not be listed on foreign exchanges. Measures to protect sensitive cargo and prevent foreign interference are also being discussed.
The revised proposal is expected to undergo further review by Israeli authorities. The acquisition remains subject to regulatory approvals, including approval by the State of Israel under its special state share in ZIM.