Hapag-Lloyd and FIMI Improve Zim Shipping Bid With New Routes

Shipping giants Hapag-Lloyd and the FIMI fund have submitted an improved offer to acquire Israeli shipping company Zim.

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

Under the proposed deal structure, Zim Israel would be separated from Zim Global and sold to FIMI. The revised offer may increase the potential for changes in Zim Israel's ownership. A vaguely worded statement indicated that "qualified teams of Zim employees responsible for cargo destined for and from Israel will be transferred to Zim Israel," though the precise meaning remains unclear. Additionally, there is a commitment to increase the number of Israeli sailors.

The proposal also states that Zim Israel will maintain ownership of a core fleet of container ships and gain access to Hapag-Lloyd's global fleet through a long-term commercial agreement, thereby boosting capacity for refrigerated and other essential cargo transport to and from Israel. The number of ships Zim Israel would receive remains unchanged at 16, with the state retaining the option to acquire 12 during crises via its golden share.

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