ZIM Sale for $4.2 Billion to Transform Israeli Shipping Industry
In a significant development for the Israeli shipping industry, ZIM, a leading shipping company in Israel, will be sold for $4.2 billion to a partnership between Hapag-Lloyd and FIMI Opportunity Funds. This acquisition marks a pivotal moment in the industry, reported by El-Balad.
Details of the Acquisition
The transaction, valued at $4.2 billion, will see Hapag-Lloyd take over ZIM’s international operations. The partnership with FIMI is designed to manage ZIM’s local assets within Israel.
- Hapag-Lloyd: The world’s fifth-largest shipping company, will operate ZIM’s fleet of 99 chartered ships.
- FIMI Opportunity Funds: Will manage 16 Israeli-flagged vessels currently operated by ZIM.
Strategic Implications
The inclusion of FIMI serves as a strategic move to circumvent the “golden share” held by the Israeli government. This share would likely have blocked a full foreign takeover of ZIM’s operations.
Market Reaction and Opposition
This sale follows initial estimates suggesting a valuation of $3 billion, which was above ZIM’s market value of $2.7 billion. Following board approvals, the increased price of $4.2 billion has been set.
However, the deal has faced significant backlash from both ZIM employees and local political figures. Many have expressed concerns over the potential loss of thousands of jobs and the national implications of transferring the company to foreign ownership.
Voices of Opposition
Haifa Mayor Yona Yahav has been particularly vocal about the sale. He asserts that losing ZIM to foreign hands jeopardizes both the economic and security landscape of Israel.
- “ZIM Shipping Company, headquartered in Haifa, is no longer part of the Israeli economy,” Yahav stated.
- He highlights the strategic importance of the company, emphasizing its role in national security and job provision.
Future Directions
As the deal progresses, the Israeli government faces pressure to intervene and review the implications of this significant sale. The pushback from various stakeholders indicates a broader concern about the future of Israeli maritime logistics under foreign control.
