Netanyahu Rejects Sale of Israeli Shipping Company Zim to German Firm Amid Security Concerns

The proposed $4.2 billion sale of Israeli shipping company Zim to German shipping giant Hapag-Lloyd faces significant opposition within the Israeli government due to national security concerns. Deputy Minister Almog Cohen warned in a government meeting that the deal, which involves Hapag-Lloyd acquiring Zim’s international operations while leaving its Israeli arm separate, poses a strategic risk because of the involvement of Qatar and Saudi Arabia, which together hold 22.5% of Hapag-Lloyd’s shares. Cohen described the sale as potentially handing over the "key to Israel’s maritime gate" to foreign interests.

Prime Minister Benjamin Netanyahu firmly stated that the sale "is not on the table," proposing instead that Israel purchase Zim for $4.5 billion to maintain control. Other key ministers, including Economy, Agriculture, and Defense Minister Israel Katz, have also voiced opposition. Katz emphasized Israel’s "golden share" rights and the possibility of using legal authority to block the transaction.

The deal’s main concern is the impact on Israel’s maritime independence, especially since over 90% of the country’s imports arrive by sea. The recent Iron Swords conflict underscored the need for Israeli control over shipping amid global boycotts and hostility. Official objections have been submitted by the Ministries of Agriculture, Economy, and Transportation, while the Companies Authority responsible for the golden share has yet to issue a formal position. The Zim workers’ union also opposes the sale, with chairman Oren Caspi calling on the government to exercise its golden share rights to prevent foreign control of Israel’s supply chain.

A final decision may be delayed until after upcoming elections, and the stance of any new government remains uncertain. However, public discourse indicates broad resistance to the sale, reflecting deep concerns about national security and economic sovereignty.