Israeli liner operator ZIM Integrated Shipping Services (ZIM) has reaffirmed its support for the merger with Germany’s Hapag-Lloyd amid reports of a higher competing offer from a third party
ZIM said on 7 May that its board had reconfirmed that, following shareholder approval at the company’s 30 April meeting, the merger agreement with Hapag-Lloyd remains binding on both parties.
The carrier added that the two companies continue to engage with relevant regulatory authorities, including the State of Israel, “in order to satisfy the regulatory conditions under the agreement and consummate the transaction.”
The statement follows media reports that Israel’s Sakal Group submitted an offer valued at around US$4.5Bn, or approximately US$37.5 per share, exceeding Hapag-Lloyd’s US$35-per-share proposal.
Led by Haim Sakal, the family office focuses on private equity investments across sectors including technology, impact tech, agri-tech, fintech, capital markets, and beauty and fashion, according to information published on its website.
However, Israeli media reports have questioned both the group’s ability to finance a transaction of that scale and ZIM’s legal ability to consider an alternative offer following shareholder approval of the Hapag-Lloyd deal.
At the same time, the Sakal proposal appears to resonate with critics of the Hapag-Lloyd transaction who have raised concerns over the future of ZIM’s business presence in Israel.
According to ZIM, however, Hapag-Lloyd has committed to maintaining a significant business presence in the country, including the long-term employment of ZIM staff.
Riviera previously reported that the combination of Hapag-Lloyd and ZIM would strengthen Hapag-Lloyd’s position as the world’s fifth-largest container shipping company, with a modern fleet of more than 400 vessels, standing capacity exceeding 3M TEU, and annual transport volumes above 18M TEU.
As part of the transaction, Hapag-Lloyd signed a binding memorandum of understanding with Israeli private equity firm FIMI Opportunity Funds covering the transfer of ZIM’s Special State Share, subject to government approval. FIMI intends to establish a new Israel-based liner operator, “New ZIM”, with a fleet of 16 vessels.
