Hapag-Lloyd and FIMI Improve Offer for Shipping Giant Zim

German shipping giant Hapag-Lloyd and Israeli investment fund FIMI have submitted an improved bid to the Government Companies Authority for the acquisition of the Zim Integrated Shipping Services company. The key enhancement in the new proposal is the retention of Zim Israel's routes to the Far East, in addition to the three routes to Europe and the United States that were part of the earlier offer. Under the proposed deal structure, Zim Israel will be spun off from the global Zim entity and sold to FIMI.

The revised offer may open up possibilities for changes in Zim Israel's ownership structure. The proposal includes a vaguely worded statement indicating that "authorized Zim employee teams responsible for cargo to and from Israel will be transferred to Zim Israel," though the precise meaning of this clause remains unclear. Additionally, a commitment has been made to increase the number of Israeli sailors employed.

Further improvements include Zim Israel owning a core fleet of container ships and gaining access to Hapag-Lloyd's global fleet through a long-term commercial agreement. This is expected to enhance capacity for transporting refrigerated and other essential cargo to and from Israel. The number of vessels Zim Israel will receive in the deal remains unchanged at 16, with the state retaining the ability to utilize 12 of these ships in a crisis via its "golden share."

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