Israel Halts Zim Shipping Deal Review, Forcing Fresh Start

The Israeli Government Companies Authority has dramatically halted its review of the proposed sale of Zim Integrated Shipping Services to the China-Israel Investment Fund (CIIF), comprising Shanghai International Port Group (SIPG) and the FIMI Opportunity Funds. The authority informed Zim that it would no longer consider the original deal structure, effectively sending the company back to square one regarding the potential sale.

If Zim and the potential buyers wish to pursue a new deal structure, they must submit a completely new application. The authority has stipulated that any new proposal requires approval from the boards of directors of Zim, CIIF, and FIMI before resubmission. This decision necessitates Zim's board reconvening to decide whether to proceed with the current buyers on revised terms or to seek alternative purchasers.

The halt comes after CIIF requested to submit a new deal proposal, though they had not yet formally done so. The original deal's review was required due to the state's 'golden share' in Zim, which grants it veto power. Several government ministries, including the Finance and Prime Minister's offices, had opposed the original terms.

The Government Companies Authority, responsible for managing the state's golden share, stated that while the original proposal is now off the table, the deal is not officially rejected. The authority noted that significant state resources were invested in reviewing the initial proposal, but the required documentation for an updated plan was not submitted on time. Zim has until October 6 to submit a new, detailed application for a revised deal, though it is considered unlikely given the broad opposition to the original terms.