The Israeli shipping company Zim will be sold to the German shipping company Hapag-Lloyd and the Israeli FIMI Fund, in a deal valued at approximately $3.7 billion.
The deal was agreed upon between the parties after six months, during which Zim held a tender for its sale. The company, which is traded on the New York Stock Exchange, is expected to be delisted.
As part of the deal, it was determined that the German company would adopt the global operations, fleets, and international shipping routes.
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The State of Israel has had a 'golden share' in the company since its privatization, which it will retain as part of the deal.
The share is intended to ensure the economy's ability to rely on the company's services in times of emergency. This arrangement is similar to the existing mechanism with El Al, and grants the state special rights on material issues concerning the national interest.
'Hapag-Lloyd is considered one of the largest shipping companies in the world. Its shareholders include the Qatar Investment Authority, which holds approximately 12.31% of the company's shares, and the Saudi Arabian Wealth Fund, which holds approximately 10.21% of the shares.
Completion of the transaction is subject to required regulatory approvals. Upon completion, control of ZIM will pass to the purchasers, subject to the state's rights being preserved.
Haifa Mayor Yona Yahav expressed his opposition to the move: "Zim is no longer a company in the Israeli economy. This is a company whose existence has strategic significance for the economy and security of the State of Israel, and employs thousands of workers - a large portion of whom live in Haifa.".
""Transferring its ownership to foreign hands, even if an Israeli investment fund is involved, is problematic to say the least and harms national security, and could also lead to the dismissal of thousands of employees. I demand that the Israeli government stop the move and prevent the sale.".
