Israel’s defence ministry has reportedly warned that the proposed transaction does not sufficiently protect Israel’s strategic maritime interests. The objection centres on the future role of “New ZIM”, the Israeli-controlled carrier that would remain after Hapag-Lloyd acquires ZIM’s international operations.
Under the deal announced in February, Hapag-Lloyd agreed to buy ZIM for $35 per share in cash, valuing the transaction at around $4.2 billion. To address Israel’s special state share, or “golden share”, part of ZIM’s business would be carved out into New ZIM, owned by Israeli private equity fund FIMI. Hapag-Lloyd said at the time that the special state share would be transferred to the new Israeli container line.
However, Israeli security officials are reportedly concerned that New ZIM would be too limited to guarantee Israel’s maritime supply needs in a crisis. The defence ministry fears the company could focus mainly on Mediterranean routes, with reduced links to the United States and the Far East, both seen as strategically important for importing military equipment and other critical goods.
The deal is also facing wider political scrutiny because Hapag-Lloyd’s shareholder base includes investors from Qatar and Saudi Arabia. Israeli officials reportedly fear this could expose the country’s access to key sea routes to political pressure in a future conflict.
Prime Minister Benjamin Netanyahu reportedly told a government meeting that the sale of ZIM was not currently on the government’s agenda. Defence Minister Israel Katz also referred to Israel’s golden share, which gives the state intervention rights where national security is concerned.
ZIM has not said the deal is off. In an update on 6 July, the company said it continues to act in accordance with the merger agreement and is cooperating with the relevant state authorities during the regulatory review.
