Israel's Finance Ministry Opposes ZIM Shipping Deal Over Hostile Influence Fears

Israel's Ministry of Finance has submitted a position paper to the Director-General of the Companies Authority, opposing the proposed sale of ZIM Integrated Shipping Services to the German shipping company Hapag-Lloyd for approximately NIS 4.2 billion. The ministry argues that the risks associated with the deal in its current form outweigh its benefits and the risks of not approving it. Key concerns include potential influence from Qatar and Saudi Arabia, which together hold 22.5% of Hapag-Lloyd's shares, particularly during political or מדיניים crises. The Finance Ministry also highlighted the structural dependency ZIM would face on Hapag-Lloyd, potentially harming ZIM Israel in the long run. Furthermore, the ministry warned that the deal structure places significant risk and exposure on the state, which could be required to inject funds and provide guarantees in case of a crisis or collapse, while the Israeli investment fund FIMI would absorb only limited losses. In a state of emergency where foreign insurers might ban ships from docking in Israel, operational control would solely rest with Hapag-Lloyd, leaving ZIM without security maneuverability. The ministry also criticized ZIM's business plan, upon which the deal is based, deeming its assumptions overly optimistic and failing to account for rising fuel prices that could lead to a loss-making transaction. The Finance Ministry stated that a revised deal significantly reducing these risks could be considered, emphasizing the need to protect Israel's vital interests, including ZIM Israel's long-term financial stability and its independence from hostile entities. ZIM is considered Israel's national shipping company and a major global player, holding significant national and strategic importance, especially during emergencies. The proposed deal would make ZIM a wholly-owned subsidiary of Hapag-Lloyd, with FIMI committed to maintaining a minimum fleet of 12 owned vessels plus four chartered from Hapag-Lloyd.