Hapag-Lloyd’s Bid for ZIM Faces Rising Pushback

Hapag-Lloyd is reportedly pursuing an acquisition of ZIM, Israel’s top container line, according to several media sources. However, the plan is already encountering opposition from ZIM’s workers’ committee, which argues that the involvement of Qatari and Saudi sovereign funds among Hapag-Lloyd’s investors could create national security concerns.

Hapag-Lloyd’s primary stakeholders include German billionaire Klaus-Michael Kühne and Chilean shipping company CSAV, each with close to a 30 percent share. Additional major investors are the City of Hamburg at about 14 percent, Qatar’s national investment authority at roughly 12.5 percent, and Saudi Arabia’s sovereign wealth fund at nearly 10 percent.

Other major global carriers, such as Mediterranean Shipping Co and Maersk, have also been mentioned as possible parties interested in ZIM.

At the end of last month, ZIM’s board dismissed a proposal from ZIM CEO Eli Glickman and Ray Car Carriers head Rami Ungar to buy the company based on a $2.4 billion valuation. At that time, ZIM stated that it had assembled a group to review strategic options for the company’s long-term direction.

Any deal would have to overcome substantial political and structural hurdles. ZIM operates under a Special State share intended to maintain its identity as an Israeli company and ensure access to vessels for national security purposes. This golden-share arrangement effectively gives the Israeli government veto authority over any acquisition, and labor groups are reportedly opposed to the firm being taken over by a foreign entity.

Hapag-Lloyd faced a similar situation in 2023 when its attempt to purchase South Korea’s HMM was stopped after the Korean government refused to allow its national carrier to be sold to an overseas buyer.

The two companies also share history. Before the pandemic, Hapag-Lloyd considered buying ZIM when the Israeli line was experiencing financial strain.