Hapag-Lloyd is preparing to revise its proposed acquisition of Zim Line after the latest round of discussions with Israeli government officials, with the German carrier expected to submit an updated proposal by the end of September.
The transaction, which was first announced in February this year, has come under close scrutiny in Israel. Several members of the Knesset have raised concerns over the country’s maritime security and whether its strategic shipping interests would remain adequately protected following the sale.
Hapag-Lloyd CEO Rolf Habben Jansen said the company had taken those concerns into account and was working with its partners on a strengthened proposal.
“We have listened carefully to the needs raised during our discussions with the Israeli government and the relevant authorities. Together with our partners, we are now developing an improved proposal designed to further strengthen Israel’s maritime security and independence,” Habben Jansen said.
Under the proposed structure, private equity company FIMI Opportunity Funds would operate New Zim, a new 16-vessel carrier made up of ships from Zim Integrated Shipping Services’ existing fleet.
The size of that fleet has itself been a point of concern since the sale was announced in February, with questions raised over whether 16 vessels would be sufficient to meet Israel’s security requirements.
As part of the revised proposal, Hapag-Lloyd said it would work with Israeli officials to secure the country’s continued access to strategically important shipping routes, including services linking Israel with Asia. The company also intends to reinforce the protections provided through the existing Golden Share framework.
The discussions have extended beyond fleet capacity and shipping connections. Some Israeli politicians have also focused on the ownership structure of Hapag-Lloyd, particularly the presence of Qatari and Saudi sovereign wealth funds among the German carrier’s shareholders. Together, the two sovereign wealth funds hold a substantial 22.5% stake in Hapag-Lloyd.
The revised agreement would also introduce additional protections for Israel’s sensitive cargo, addressing concerns over potential foreign influence in its transportation.
“The agreement will also prevent any foreign interference in the transportation of Israel’s sensitive cargo, representing a significant improvement over the current arrangement,” Habben Jansen said.
He added that the proposed transaction would also carry broader significance for relations between the two countries.
“We believe this transaction would mark another important milestone in the close relationship between Germany and Israel,” he said.
With the revised proposal due by the end of September, Hapag-Lloyd is now seeking to address the security concerns surrounding the Zim transaction while preserving the strategic shipping links considered essential to Israel.
