Israel’s Finance Ministry announced Monday evening that it opposes Israeli shipping line ZIM’s request to approve its sale and merger with German shipping company Hapag-Lloyd and FIMI Opportunity Funds.
The ministry’s position was submitted in response to ZIM's request for approval from the holders of the state’s "golden share," whose consent is required to finalize the transaction.
The official response was submitted by Finance Ministry Director General Israel Malachi in full coordination with all relevant professional bodies, including the Accountant General’s Office, the Budget Department, the Chief Economist’s Office, and the Legal Bureau. The ministry stated that “under the current structure of the transaction, the economic, operational, and security risks clearly outweigh its benefits, and therefore the transaction should not be approved in its proposed form."
Among the key reasons cited by the ministry were complete structural and operational dependence on a competing entity, the involvement of hostile shareholders in the acquiring company - including the governments of Qatar and Saudi Arabia - as well as inherent flaws in the deal's incentive structure that shift risks onto the State of Israel.
The ministry further warned that the transaction in its current form would severely jeopardize Israel’s operational continuity and supply chain security - including the potential loss of shipping routes to the Far East - and is built on unrealistic business assumptions and an aging fleet.
The Finance Ministry noted that any future transaction structure would require a renewed assessment of Israel’s national shipping needs by the Shipping and Ports Authority, along with enhanced safeguards to protect vital state interests. The ministry emphasized that evaluating a new proposal would be possible “only if it significantly reduces dependence on hostile entities, ensures independent maritime supply continuity, and presents a financially sound, long-term stable model."
The deal, valued at approximately $3.7 billion, was announced this past February following a six-month tender process.
Under the agreed terms, ZIM - which is currently traded on the New York Stock Exchange - was set to be delisted, with Hapag-Lloyd taking over the company’s global operations, fleets, and international trade routes.
The State of Israel has held a golden share in ZIM since its privatization, granting the government veto power over major structural changes that could threaten national interests.