Israel Halts ZIM Shipping Deal Review, Forcing New Negotiations

The Israeli Government Companies Authority has dramatically halted its review of the proposed sale of ZIM Integrated Shipping Services to the Shaldor Group and the FIMI Opportunity Funds. The authority informed ZIM that it will no longer consider the original deal structure, effectively sending the company back to square one.

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

The authority's move follows Shaldor and FIMI's expressed intention to submit a revised deal structure, 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 reportedly opposed the original terms.

The Government Companies Authority, responsible for managing the state's golden share, stated that while it had invested significant resources in reviewing the initial proposal, the necessary documentation for an updated plan was not submitted on time. Consequently, the original request is now considered void.

ZIM and its potential buyers have until October 6 to submit a new, detailed proposal for a revised deal. However, given the broad opposition to the original terms, it is unlikely they will pursue this path. The authority emphasized that any new submission must be comprehensive and gain board approval from all parties involved.