Israeli Government Prepares Decisive September Vote on Zim Shipping Sale to German Firm and Israeli Fund

The Israeli government is accelerating efforts to finalize its official position on the proposed sale of Zim Integrated Shipping Services to German shipping giant Hapag-Lloyd and Israeli investment fund FIMI. The Government Companies Authority (GCA) sent a letter to various government bodies requesting their formal stance on the transaction by August 20. Following this deadline, a series of intensive intergovernmental discussions will culminate in a key meeting on September 9, where the state’s official position will be determined. Afterward, a hearing will be held for FIMI and the buyers to present their final arguments.

The GCA, led by Roy Kahlon, coordinates the internal government process, consolidating positions from different ministries and authorities under the state’s golden share rules, which restrict ownership transfers in privatized companies. If consensus is lacking, the GCA will issue an independent recommendation. Most government entities have submitted preliminary positions, many conditional on additional information requested from FIMI and Hapag-Lloyd. The emerging picture indicates majority opposition to the deal.

Senior Captain Zadok Redkar, head of the Shipping and Ports Authority, recently reaffirmed his opposition, a stance supported by the Transportation Ministry. The Economy and Agriculture Ministries also oppose the deal, with the Economy Ministry calling it a "corporate maneuver" that threatens national interests. Defense Minister Israel Katz and Prime Minister Benjamin Netanyahu have publicly voiced their opposition in the Knesset. Despite no legal obligation, government officials have met with the buyers multiple times to hear their arguments, though FIMI disputes claims of extensive meetings and says it has provided over 600 pages of responses and external expert opinions.

The $4.2 billion deal, signed in February, values Zim at $35 per share in cash. It involves Hapag-Lloyd acquiring the entire company and delisting it from the New York Stock Exchange. The international operations would merge with the German firm, while Israeli activities would transfer to FIMI, which would own a fully Israeli company operating numerous vessels. The main controversy centers on whether the new structure preserves the state’s ability to requisition ships in emergencies, as required by the golden share. FIMI asserts the new Israeli company will be independent, debt-free, and maintain control over core business and strategy.

The government aims to resolve the long-running saga swiftly, with the September 9 meeting expected to be decisive in shaping Israel’s official stance on the sale.