Hapag-Lloyd and FIMI Improve Offer for Zim Integrated Shipping Services

German shipping giant Hapag-Lloyd and Israeli investment fund FIMI have submitted an improved bid to the Government Companies Authority for the acquisition of Zim Integrated Shipping Services. The key enhancement to the offer is the retention of Zim Israel's Far East shipping routes, in addition to the three routes to Europe and the U.S. included in their prior proposal. Under the proposed deal, Zim Israel would be spun off from the global Zim entity and acquired by FIMI.

The revised offer may open avenues for changes in Zim Israel's ownership structure. The proposal includes a vague 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 intended to boost capacity for transporting refrigerated and other essential cargo to and from Israel. The number of vessels Zim Israel would receive in the deal remains unchanged at 16, with the state retaining the option 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.