The German shipping company Hapag-Lloyd has announced a plan to buy Israel’s ZIM Integrated Shipping Services for $35 per share in cash. This deal values the transaction at approximately $4.2 billion and represents one of the biggest consolidation moves in container shipping since the pandemic boom.
The offer is a significant 58% higher than ZIM’s stock price on February 13 and about 126% more than its share price from August 2025, before rumors of the acquisition surfaced. If the deal goes through, Hapag-Lloyd's global market share will rise to around 9.2%, making it the fifth-largest liner operator in the world, just behind MSC, Maersk, CMA CGM, and COSCO, according to data from Alphaliner rankings.
The combined company will have a fleet capacity of more than 4.8 million TEU, will transport about 17–18 million TEU each year, and operate over 400 vessels. This move comes at a time when shipping companies are facing declining freight rates, high operating costs due to extended Red Sea route diversions, and changes in alliance structures.
“ZIM is a great match for Hapag-Lloyd,” said CEO Rolf Habben Jansen, highlighting increased coverage in markets including Transpacific, Intra-Asia, Atlantic, Latin America, and East Mediterranean trades.
The merger is primarily about improving geographic and operational strengths. It will significantly enhance Hapag-Lloyd’s position in the Transpacific market, placing the new company among the top four operators in this crucial route and gaining an estimated 3 to 4 percentage points in market share. The Atlantic trade will also see considerable growth, filling historical gaps in Hapag-Lloyd's network.
ZIM brings about 713,000 TEU of operational capacity with 117 container vessels and 14 car carriers, with around 60% of the fleet made up of newer vessels. The fleet also includes approximately 40 LNG-powered ships, positioning the merged company among the leaders in alternative fuel usage.
Management anticipates annual synergies of $300–$500 million, mainly from improving network efficiency, bulk buying, consolidating equipment, and integrating IT systems. Hapag-Lloyd noted its previous success with integrating UASC, CSAV, and NileDutch as proof of its operational capabilities.
This merger will also strengthen Hapag-Lloyd’s role in the Gemini Cooperation, its strategic alliance with Maersk that started in February 2025, potentially adding more volume to their joint operations and improving asset usage.
The deal features a carefully designed plan to address Israel's national security concerns.
ZIM has a non-transferable "Golden Share" controlled by the State of Israel that comes with special protections. Per the deal, this share will be passed to FIMI Opportunity Funds, Israel's largest private equity firm with over $11 billion in assets.
FIMI will create a new Israeli container company, “New ZIM,” which will start with 16 modern vessels serving key trade routes connecting Israel with major ports in the EU, U.S., Mediterranean, and Black Sea. This new company will operate under the ZIM brand and receive commercial support from Hapag-Lloyd, including access to the Gemini network that includes 29 shared mainline services and 29 shuttle services across East-West trade routes.
“FIMI acknowledges the strategic importance for Israel of having a robust independent shipping company,” stated Ishay Davidi, Founder and CEO of FIMI Funds. “We will build a stable Israeli company, the new ZIM, and see Hapag-Lloyd as a key strategic ally in its operations.”
For shareholders, this agreement represents the conclusion of one of the most remarkable value cycles in liner shipping history.
Since its IPO in January 2021, ZIM has paid out $5.7 billion in dividends. When combined with the acquisition price, the total returns to shareholders approach $10 billion — approximately five times its initial market value and 45 times the capital raised at its IPO.
ZIM gained significant attention as one of the most closely watched stocks in the industry during the pandemic-era freight surge due to its strong ties to the transpacific spot market. Under CEO Eli Glickman, the company transformed from negative equity in 2017 to record profits when the market peaked.
“I am incredibly proud of the strategic changes we have made at ZIM over the past years, which have generated significant value for our shareholders,” Glickman commented. “Since joining in 2017, ZIM has advanced from a position of negative equity to become an industry leader with solid financial and operational results.”
The acquisition occurs during a period of reduced profitability for liners.
Hapag-Lloyd reported 2025 revenues of $21.1 billion, with EBITDA of $3.6 billion and EBIT of $1.1 billion — a considerable drop from $5.0 billion and $2.8 billion in 2024, respectively. While volumes increased by 8% to 13.5 million TEU, average freight rates decreased by 8% to $1,376 per TEU.
Diversions due to the Cape of Good Hope and costs associated with starting Gemini have affected margins, although management indicates that synergies from the alliance began to take effect in the latter half of 2025 and will be fully realized in 2026.
The ZIM board has unanimously approved the deal, which is expected to close by late 2026, pending shareholder and regulatory approvals. Until then, both companies will continue their operations separately under normal conditions.
If finalized, this acquisition suggests that post-pandemic consolidation, long anticipated after substantial profits, is finally becoming a reality. The next phase of the shipping industry cycle looks set to be defined by not just short-term gains, but also scale, fuel strategies, and network management.