Hapag-Lloyd eyes ZIM acquisition, workers push back
The German shipping giant is targeting Israel’s largest maritime operator, sparking opposition from ZIM’s workers over security concerns tied to Saudi and Qatari shareholders, while other bidders remain in play.
Hapag-Lloyd, the German shipping company traded in Frankfurt with a market value of 20 billion euros, is interested in acquiring ZIM. However, ZIM's workers' committee opposes the move, citing security concerns. They argue that the German company's shareholders include funds from Saudi Arabia and Qatar, which they claim could pose a risk to Israel.
The Saudi and Qatari shareholders together hold about 35% of Hapag-Lloyd’s shares.
The ZIM board of directors stated: "As previously announced, the board of directors is conducting a strategic review process to explore possible alternatives for delivering value to shareholders, including the potential sale of the company. The process is ongoing, and several entities have expressed interest. The board will not comment on the identity of these entities or the content of their proposals until an agreement is reached or the review process is otherwise completed."
On Wednesday, the ZIM workers' committee wrote a letter to Israel’s Minister of Transport, Miri Regev, requesting that the acquisition be blocked. They argue that the deal could endanger the national supply chain, as it would give Saudi and Qatari elements indirect influence over Israel’s maritime lifeline.
The state holds a “golden share” in ZIM, and would need to approve the acquisition by Hapag-Lloyd.
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Other international companies are also reportedly interested in acquiring ZIM. This follows Eli Glickman joining Rami Ungar in submitting the first purchase offer.
ZIM directly employs around 1,000 people in the country.
According to the committee, 98% of Israel’s trade by weight relies on maritime transport. “ZIM is the only shipping company that operated during the Swords of Iron war, delivering food, medicine, ammunition, and critical military equipment,” the committee said. “If the company passes into the hands of potentially hostile foreign investors, Israel could lose this capability entirely.”
Last week, Calcalist reported that an international shipping company is in talks with the investment bank Evercore to acquire control of ZIM. The negotiations were believed to be centered on a price higher than the bid submitted by Glickman and Ungar, whose offer was rejected by ZIM’s board of directors.
In August, Calcalist revealed that Ungar was the businessman who joined Glickman and four other senior executives in a management buyout attempt in which the group sought to acquire the company. Their proposal, as far as is known, was $25 per share, valuing ZIM at $2.3-$2.4 billion, compared with its trading value at the time of $1.87 billion.
ZIM’s board, chaired by former Bank Hapoalim chairman Yair Seroussi, rejected the bid and hired Evercore to examine strategic alternatives for the company’s sale. Although ZIM is not currently controlled by a single shareholder, the process could lead to a new controlling interest.
