BERLIN, Sept 29 - Hapag-Lloyd has called on Israeli authorities to reconsider the terms of its $4.2 billion bid for ZIM Integrated Shipping Services.
On Monday, Israel's finance ministry stated that it would not approve the deal. However, Hapag-Lloyd argued that this stance does not take into account significant improvements made in the proposal last week.
These improvements include a new direct shipping route to Asia and enhanced protections for the state under an updated "golden share" arrangement.
In a related development, the Israeli private equity fund FIMI intends to purchase 16 ships from ZIM, establishing a new company called ZIM Israel, which will ensure direct global maritime connections for the country.
Initially, the proposal met with strong opposition in Israel. The finance ministry commented on Monday that "the economic, operational, and security risks significantly outweigh the benefits."
The ministry raised issues regarding Hapag-Lloyd's shareholder structure, highlighting that Qatar holds a 12.3% stake and Saudi Arabia 10.2% in the German company. They warned that this creates a significant strategic risk due to potential political pressure and foreign influence during crises.
On September 24, Hapag-Lloyd and FIMI submitted important aspects of a revised proposal. This included a direct shipping route to the Far East, internal maritime operations for ZIM Israel, investment in Israeli seafarers, and added protections for Israel’s transportation needs.
The new proposal also offers enhanced state protection for Israel's "golden share," granting special ownership rights in ZIM. These stronger provisions would boost Israel's authority and control over ownership changes, prevent foreign interference, and ensure Israel's independence regarding ZIM Israel's fleet.
Hapag-Lloyd stated that full details of the revised framework would be completed within 45 days, and the company aims to finalize the transaction by the end of the year.