Hapag-Lloyd and FIMI Improve Bid for Zim Shipping Company

German shipping giant Hapag-Lloyd and Israeli investment firm FIMI have submitted an improved offer to acquire Israeli shipping company Zim.

The key enhancement in the revised proposal is the allocation of additional shipping routes to the Far East for Zim Israel, supplementing the three routes to Europe and the U.S. already included in their previous bid. The CEO of Hapag-Lloyd visited Israel recently in anticipation of submitting this joint document, parts of which were released to the press.

Under the proposed terms, Zim Israel would be separated from the global Zim entity and sold to FIMI. This new offer could potentially lead to further changes in Zim Israel's ownership structure. The proposal includes a vaguely worded clause stating that "qualified Zim employees responsible for cargo to and from Israel will be transferred to Zim Israel," with its precise meaning unclear. Additionally, there is a commitment to increase the number of Israeli sailors.

The improved offer also stipulates that Zim Israel will maintain ownership of a core fleet of container ships and gain access to Hapag-Lloyd's global container fleet through a long-term commercial agreement. This is intended to increase capacity for refrigerated and other essential cargo transport to and from Israel. However, the number of ships Zim Israel would receive remains unchanged at 16, with the Israeli state retaining the option to acquire 12 of these during a crisis through its "golden share" mechanism.

Hapag-Lloyd and FIMI stated that they have carefully considered Israel's position and made significant improvements to their offer with the goal of establishing a strong shipping company.