Treasury opposes ZIM deal – Globes
In its response to the Director of the Authorities Firms Authority, the Ministry of Finance expressed opposition to the sale of ZIM Built-in Transport Companies (NYSE: ZIM). The place paper mentioned, “it’s evident that the deal entails a sequence of fabric dangers that aren’t adequately addressed within the present agreements – as detailed at size in our place – and it’s due to this fact really helpful to not approve the deal within the present framework introduced.”
In a 33-page doc, the Ministry of Finance outlined its detailed objections to the deal, which might successfully cut up Zim into two corporations: the worldwide arm – to be held by Hapag-Lloyd, comprising the chartered vessel fleet and worldwide commerce routes that don’t name at Israeli ports (representing the vast majority of Zim’s operations) – and the Israeli arm – to be held by Israeli non-public fairness agency FIMI Alternative Funds, which might take over operations for routes calling at Israeli ports, the Haifa headquarters, the Israeli workforce (61 sailors and 80-120 important shore-based staff), and duty for compliance with the Golden Share provisions (the State’s particular share). This firm would obtain at the least 16 vessels.
In accordance with the Ministry of Finance, the deal presents a lot of dangers: structural dependence on Hapag-Lloyd, provided that Zim Israel just isn’t being established as a completely impartial transport firm; An incentive-related difficulty relating to the FIMI fund, because the deal construction entails FIMI investing no fairness on the time of inception and buying the corporate with out a right away money outlay, thus severing the alignment of pursuits between the homeowners and the corporate’s success; optimistic assumptions within the enterprise forecast that – based on the Ministry of Finance – disregard the sector’s excessive volatility and the truth that value ranges are prone to geopolitical shocks; a lack of economies of scale, provided that the Israeli firm would function comparatively getting old vessels whereas the worldwide transport trade shifts towards new applied sciences; and the involvement of hostile shareholders, contemplating that the Qatar authorities (12.3%) and Saudi Arabia (10.2%) maintain stakes in Hapag-Lloyd.
On this context, the Ministry of Finance insists, “There’s a real concern that this international affect could possibly be exploited throughout political or diplomatic crises to disrupt operations serving Israel or to exert international stress, akin to international affect makes an attempt recognized in comparable instances involving international corporations”; in addition to an extra danger relating to the absence of an impartial path to East asia, which runs counter to the state’s commerce diversification technique.
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Ministry of Finance: Safeguarding Israeli Pursuits first
The Ministry of Finance concluded, “As a physique liable for state coverage, it’s our obligation to make sure that such a deal ensures the preservation of the State of Israel’s very important pursuits, on each the long-term monetary stability of ZIM and the elimination of its dependence on entities hostile to Israel.
“The Ministry of Finance’s major concern is that the present definition of the state’s very important pursuits might not stand the take a look at of time. It argues that “to safeguard the state’s pursuits in ZIM, the Administration of Transport and Ports should instantly conduct a employees overview to find out Israel’s shipping-related wants and pursuits, and to look at potential modifications to the definition of the state’s very important pursuits within the firm and the rights conferred by the ‘golden share’.”
Further considerations stem from the possession construction and the traits of the fleet to be transferred to ZIM Israel. “This hole is mirrored within the state’s lack of ability to make sure efficient Israeli management, oversee modifications in possession and administration, and assure the upkeep of a fleet suited to nationwide wants over time, alongside the long-term retention of an Israeli workforce.”
The Ministry of Finance says the deal creates a small firm that will likely be closely depending on Hapag-Lloyd for its ongoing operations and success. Whereas Zim Israel will purchase 16 ships, 12 of which will likely be owned outright, together with the model, staff, and present operations, and is ready to start exercise free of monetary debt and with out paying fast consideration for the vessels and belongings, its capacity to rework these belongings into an impartial, aggressive, and sustainable transport firm seems, in our view, to have a low chance of success.
Simply moments earlier than the embargo on the Ministry of Finance’s announcement was set to run out, the Prime Minister’s Workplace additionally introduced its opposition to the Zim deal.
“The brand new proposal addresses the problems”
German transport firm Hapag-Lloyd and its Israeli associate, the FIMI fund, submitted the outlines of an improved proposal to the Israeli authorities final Thursday for the acquisition of the transport firm Zim. The proposal contains enhancements to the deal’s parts however doesn’t alter the worth. Hapag and FIMI search to accumulate ZIM at a valuation of $4.2 billion ($35 per share).
In accordance with the corporate’s announcement, the proposal addresses points raised throughout discussions with Israeli authorities – notably relating to safety issues – and is designed to “strengthen Israel’s maritime independence, nationwide safety, and the resilience of its provide chain infrastructure.”
Hapag-Lloyd and FIMI said that they might finalize the marketing strategy and the complete authorized framework for the deal over the following 45 days. Throughout this era, executives from Hapag-Lloyd and FIMI intend to carry a sequence of conferences in Israel with related authorities and authorities ministries to current the enhancements and talk about the small print of the revised deal.
The ZIM deal was initially scheduled to shut by the tip of the 12 months; whereas the overview of those modifications may result in additional delays in completion (particularly given the election interval). The settlement’s validity may be prolonged till mid-2027.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on September 28, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
