The German shipping company Hapag-Lloyd has confirmed the agreement to acquire “100% of the shares” of what was until now one of its competitors, the Israeli company ZIM. The progress of the negotiations had been leaked over the weekend, and both shipping companies made the agreement public on Monday. They also confirmed that the price per share will be $35, valuing the transaction at $4 billion.
As previously announced, Hapag-Lloyd has also entered into a parallel agreement with the Israeli fund FIMI Opportunity Funds, which will take over the new subsidiary in Israel. The reason for this lies in the special functions that ZIM has for the State of Israel, which holds part of its capital. In this way, this part of the current ZIM´s activity will be transferred to FIMI and the new company, which will start operating with 16 container ships, will continue to be an Israeli firm, although it will be integrated into Hapag-Lloyd´s global networks. “The new company, which will operate under the ZIM trademark, will be operated and managed by FIMI and strategically supported in the long term by Hapag-Lloyd, including commercial support in the initial period to enable a structured start-up of operations,” sources at the Middle Eastern shipping company have announced. They added that “Hapag-Lloyd maintains its intention to remain in Israel in the long term and retain ZIM´s employees.”
The transaction is expected to be completed “by the end of 2026.” Before then, ZIM´s shareholders and the State of Israel itself must give their approval, as regards the shipping company´s special functions with the country. Until then, “both companies will operate independently and maintain ‘business as usual,’” ZIM emphasized in its statement. Approvals “from the relevant authorities” will also be necessary, Hapag-Lloyd notes, which may involve competition regulators.
Hapag-Lloyd CEO Rolf Habben Jansen has anticipated that its network will be “significantly strengthened on transpacific, intra-Asian, Atlantic, Eastern Mediterranean, and South American routes.” Some analysts have already pointed out that the purchase could be a blow to MSC, Hapag-Lloyd´s rival, and its alliance with Maersk, the Gemini Cooperation, as ZIM had cooperation agreements with the Italian-Swiss shipping company on several regular routes. Now, its operations will be added to the network of its rivals in Gemini. Even so, the takeover will not help Hapag-Lloyd climb the rankings in terms of the capacity of large shipping companies, despite clearly strengthening its fifth position ahead of Ocean Network Express (ONE).
News and image obtained: "El Mercantil"
