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🇮🇱 Israel /Elections & Politics

Hapag-Lloyd to improve $4.2b. bid for ZIM after opposition from gov't, workers, company says

From Jerusalem Post · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources New plan
  • Hapag-Lloyd said it is working with Israeli officials to improve its proposed $4.2 billion cash acquisition of ZIM after opposition from government officials and workers.
  • The revised plan would make ZIM a fully Israeli-controlled company owned by FIMI and create ZIM Israel, a separate company with 16 vessels and direct maritime links for Israel.
  • The proposal would lower the threshold for foreign ownership without prior government notice and is expected to go before Israel's cabinet later this month.

Hapag-Lloyd is revising its proposed $4.2 billion purchase of ZIM after the deal encountered strong opposition in Israel from workers, Defense Minister Israel Katz and other officials. Critics argue that transferring the country's shipping company to foreign ownership could undermine national security.

The German shipping group said it had held several meetings with Israel's economy, finance and defense ministries to change structural elements of the proposed acquisition. The revised plan is expected to be submitted to the cabinet later this month.

We are now developing an improved proposal designed to further strengthen Israel's maritime security and independence.

· Rolf Habben JansenThe Hapag-Lloyd CEO described the purpose of the revised acquisition proposal.

“We are now developing an improved proposal designed to further strengthen Israel's maritime security and independence,” Hapag-Lloyd CEO Rolf Habben Jansen said. He added that the proposal would preserve Israel's access to key shipping routes, including those linking the country with Asia.

The revised proposal will secure Israel's access to key shipping routes, including routes from Asia.

· Rolf Habben JansenHe explained how the revised plan would address concerns about Israel's maritime connections.

Under the plan, ZIM would become a fully Israeli-controlled container shipping company owned by Israeli private equity fund FIMI. FIMI also plans to acquire a separate business carved out of ZIM with 16 vessels. That company, called ZIM Israel, would provide direct global maritime connections for Israel.

Israel holds a golden share in ZIM, giving the government special ownership rights. Hapag-Lloyd proposed reducing the shareholding threshold for a single foreign investor from 24% to 10% without prior notice to the government. FIMI also committed not to list ZIM Israel shares outside Israel's stock market.

The agreement will also prevent any foreign interference in the transportation of Israel's sensitive cargo, representing a significant improvement over the current arrangement.

· Rolf Habben JansenHe outlined a proposed safeguard for sensitive cargo.

Habben Jansen said the revised agreement would prevent foreign interference in the transport of Israel's sensitive cargo. Oren Caspi, chairman of ZIM's workers' committee, remained opposed, saying ZIM should not be handed over to “hostile parties.”

hostile parties

· Oren CaspiThe ZIM workers' committee chairman used the phrase while opposing the proposed tie-up.
About this summary

Originally published by Jerusalem Post. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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