Hapag-Lloyd and Israeli private equity firm FIMI are expected to submit a revised proposal for their US$4.2 billion acquisition of ZIM.
The two parties have been given 30 days to make structural changes to the transaction, according to a report by Calcalist.
The changes are aimed at addressing concerns raised by the Israeli government over the future of ZIM and Israel’s maritime interests.
Israeli authorities seek changes to deal
Hapag-Lloyd and FIMI agreed to acquire ZIM in February. The transaction has received shareholder approval but still requires regulatory clearances.
A key hurdle is approval from the Israeli government due to the state’s golden share in ZIM.
According to Calcalist, Israeli authorities have raised concerns over access to key international shipping routes following the acquisition.
There are also concerns about the future structure of ZIM Israel. Under the proposed transaction, it is expected to operate separately under FIMI’s ownership.
Calcalist reported that six of eight government bodies expected to provide opinions on the transaction have opposed it. These reportedly include the ministries of Economy, Agriculture and Transport.
Parties receive 30-day extension
Hapag-Lloyd and FIMI have held several meetings with Israeli government representatives in recent weeks.
The parties have now agreed to a 30-day extension to address the concerns raised by authorities.
According to the report, the revised structure is expected to include tighter restrictions on foreign ownership and greater government control over ZIM Israel.
Changes aimed at strengthening Israel’s maritime capacity are also expected to form part of the revised proposal.
Hapag-Lloyd outlines safeguards in revised proposal
Hapag-Lloyd has argued that the proposed transaction would protect Israel’s maritime transport capabilities.
According to Calcalist, the German carrier said during discussions that the deal would leave “the chance of any foreign interference in Israel’s maritime transport capabilities” at zero.
This includes the transportation of sensitive cargo and essential goods to Israel.
Hapag-Lloyd CEO Rolf Habben Jansen said the carrier had “listened carefully” to the concerns raised during discussions with the Israeli government and relevant authorities. He said Hapag-Lloyd and its partners are developing an improved proposal aimed at strengthening Israel’s maritime security and independence, including securing access to key shipping routes from Asia and reinforcing protections under the Golden Share framework. According to Habben Jansen, the revised proposal would also prevent foreign interference in the transportation of sensitive Israeli cargo.
The 30-day extension gives Hapag-Lloyd and FIMI additional time to revise the transaction before the Israeli government makes a final decision.
