Hapag-Lloyd has responded to recent concerns raised by Israeli authorities over its proposed US$4.2 billion acquisition of ZIM, arguing that their positions relate to the original transaction structure and do not reflect significant improvements made to the proposal.
The German carrier and its partner FIMI are now further detailing the revised structure. Hapag-Lloyd said the proposal will be submitted and explained to the relevant Israeli authorities over the coming weeks.
“The positions presented, among others, by the Ministry of Finance and the Government Companies Authority (GCA) of the State of Israel relate to our original proposal and do not take into account the significant improvements that have since been made to the proposed structure,” said Rolf Habben Jansen, CEO, Hapag-Lloyd.
Habben Jansen said Hapag-Lloyd and FIMI developed the improved proposal after considering concerns raised by Israeli authorities.
“We are confident that the strengthened proposal addresses the concerns raised and will pave the way for approval of the transaction. We remain focused on closing the transaction as soon as possible,” said Habben Jansen.
Revised proposal moves toward new review
The comments follow the decision by Israel’s Government Companies Authority to end its review of the original transaction structure. As Container News reported earlier this week, any materially revised structure would require a new application and fresh review process.
Hapag-Lloyd’s latest response comes as the proposed transaction faces another challenge. A group representing more than 10% of ZIM’s shares has called for any materially revised transaction with Hapag-Lloyd and FIMI to be submitted to shareholders for approval.
The shareholders argue that board approval alone would not be sufficient for a substantially different transaction structure. However, their demand does not establish that another shareholder vote is legally required.
Against this backdrop, Hapag-Lloyd maintains that the revised proposal addresses the concerns raised by the Israeli government.
The improvements include an additional route connecting Israel with Asia, investment in Israeli maritime personnel, measures to retain shipping expertise in the country and a new modern fleet for ZIM Israel. These elements were previously detailed by Hapag-Lloyd and reported by Container News.
“The substantially improved proposal gives Israel materially more maritime independence and addresses all its national security needs,” said Habben Jansen.
Hapag-Lloyd and ZIM entered into a binding merger agreement in February. The transaction has already received ZIM shareholder approval but remains subject to regulatory clearances, including approval connected to the Israeli state’s special rights in ZIM.
