Hapag-Lloyd to Acquire Israel’s Zim in $4.2 Billion Deal

Hapag-Lloyd confirmed on Monday (16) that it has agreed to acquire Israeli carrier Zim Integrated Shipping Services in a deal valued at $4.2 billion.

The German liner operator signed an agreement to purchase Zim for $35.00 per share in cash, subject to approval by both sides. The offer represents a 65% premium to Zim’s closing share price of $21.18 on Friday (13).

Hapag-Lloyd said the transaction will be financed through existing cash reserves and external funding of up to $2.5 billion. Earlier, the company had disclosed that its management was in advanced talks to acquire all outstanding shares of Zim, though the required approvals had not yet been secured at that time.

The deal is expected to close by the end of this year.

Zim is considered a strategic asset for Israel, and the state holds a “golden share” granting it veto power over certain key decisions, including changes of control.

To address those provisions, Hapag-Lloyd agreed with FIMI Opportunity Funds to establish a company controlled by the investment firm to assume obligations tied to the Israeli government’s special rights. Under the arrangement, twelve vessels and assets required to operate three trade routes will be transferred from Hapag-Lloyd or Zim to the new entity.

The transaction remains subject to approval by the Israeli government, Zim shareholders and relevant regulators.

The move follows Zim’s appointment of an independent committee that, in recent months, conducted a strategic review to evaluate alternatives including a sale, capital allocation options and other measures aimed at maximizing shareholder value. The review was triggered by a revised takeover proposal submitted by Zim CEO Eli Glickman and Israeli businessman Rami Ungar. That offer was rejected, though the company previously said it had received interest from other parties.

Zim recently reported a sharp drop in third-quarter earnings amid collapsing freight rates and lower container volumes, and warned that fourth-quarter conditions had weakened. Glickman said the company has faced highly volatile freight markets, frequent shifts in trade policies and persistent global tensions, forcing adjustments to its transpacific network.

Zim operates a fleet of roughly 129 vessels, according to a recent investor presentation. The company follows an asset-light model, chartering a large portion of its fleet to maintain flexibility in adjusting capacity to market conditions. At the same time, it has been gradually increasing the share of owned or long-term chartered vessels, a strategy it says improves fleet quality and reduces exposure to short-term market volatility.

Listed on the New York Stock Exchange, Zim had a market capitalization of $2.7 billion as of last Friday’s close.

Source: Valor Econômico

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