Israel's Finance Ministry Rejects Proposed Zim Shipping Deal

Israel's Ministry of Finance has officially opposed the current framework of the proposed merger deal between the shipping company Zim Integrated Shipping Services and Germany's Hapag-Lloyd, along with the FIMI fund. The ministry stated that the economic, operational, and security risks associated with the deal significantly outweigh its potential benefits.

A primary concern raised by the Finance Ministry is the substantial shareholdings in Hapag-Lloyd held by the governments of Qatar (12.3%) and Saudi Arabia (10.2%). This, the ministry argues, creates a "real strategic risk of political pressure and foreign influence during times of crisis and emergency."

Furthermore, the ministry contends that the resulting entity, to be named 'Zim Israel,' would be overly dependent on its competitor, Hapag-Lloyd. It would not operate as an independent shipping company but would rely almost entirely on Hapag-Lloyd's infrastructure. This arrangement also presents a conflict of interest, as 'Zim Israel' would compete with Hapag-Lloyd on the route to the United States.

The ministry's position was submitted by Director-General Israel Mallaichi and was coordinated with and approved by professional elements within the ministry, including the Accountant General's office, the Budget Division, the Chief Economist's office, and the legal department.

The Finance Ministry indicated that any future proposal would require a renewed assessment of national shipping needs by the Shipping and Ports Authority. Such a proposal would only be considered if it demonstrably reduces dependence on hostile entities, ensures independent maritime supply continuity, and presents a financially sound and genuinely stable long-term model.