On the surface, the deal appeared to be a purely commercial acquisition between a German and an Israeli shipping company. However, the presence of sovereign wealth funds from Saudi Arabia and Qatar among Hapag-Lloyd's major shareholders quickly transformed it into a political and security affair. Israel fears that the sale of Zim, one of its leading maritime companies, will grant Gulf interests indirect influence in a sector it considers vital during times of crisis and war. Meanwhile, the German group is attempting to reassure Israel that Arab investors do not interfere in its operational decisions.
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The dispute resurfaced after Hapag-Lloyd CEO Rolf Haben-Janssen reaffirmed his commitment to acquiring Zim despite Israeli objections. In an interview with Welt am Sonntag, details of which were reported by Handelsblatt and the German Press Agency (dpa), he stated that talks with Israeli authorities had intensified in recent weeks, expressing confidence that a formula could be reached to secure their approval.
Why did Saudi Arabia and Qatar appear in the deal?
The direct buyer is not a Saudi or Qatari company , but rather the German firm Hapag-Lloyd, headquartered in Hamburg. However, Qatar's sovereign wealth fund owns 12.1 percent of the group's shares, while Saudi Arabia's Public Investment Fund owns 10.2 percent, according to figures published by Handelsblatt. This means that together they own more than a fifth of one of the world's largest shipping companies.
The Qatari and Saudi funds together own more than one-fifth of one of the world's largest shipping companies, Hapag-Lloyd.
Israeli authorities view this acquisition with concern because it is not a typical investment in a hotel or real estate company, but rather an attempt to purchase a maritime carrier that plays an important role in connecting Israel to global markets and supply lines.
The chairman of Hapag-Lloyd, however, rejects any connection between share ownership and control of the company's operations. He stated that the Saudi and Qatari shareholders have no direct influence on day-to-day operations, adding that the group's ships have continued to arrive in Israel weekly for the past three years, and that Arab investors have supported the company's development throughout that period.
What is “Zim” and why does it matter to Israel?
Zim was founded in 1945, before the establishment of the State of Israel, and has since become one of its leading maritime companies. Today, it operates in more than 90 countries and serves approximately 33,000 customers in over 300 ports, according to company data. It ranks tenth globally among container shipping companies, according to a statement issued by Hapag-Lloyd when the deal was announced.
Its importance stems not only from its commercial volume. Israel relies heavily on maritime transport to import goods, raw materials, and equipment, especially given its limited land borders and the frequent instability in the region. In times of war, the ability to keep shipping lanes open and transport what authorities deem sensitive goods becomes a matter that transcends mere profit and loss calculations.
This is why the Israeli state retains what is known as the "golden share" in Zim. This does not necessarily mean it is the largest shareholder in the company, but rather grants it special rights that allow it to intervene in decisions affecting national security, including changing control of the company or compromising its ability to serve strategic interests.
This authority explains why the approval of Zim's board of directors and shareholders is not enough to complete the sale; the deal also needs the approval of the Israeli authorities and regulatory bodies.
A deal worth more than four billion dollars
Hapag-Lloyd had signed an agreement in February to acquire all of Zim's shares for $35 per share in cash, for a total value of approximately $4.2 billion, or about €3.6 billion. Subject to approvals, the transaction is expected to be completed before the end of the year.
Hapag-Lloyd had signed an agreement in February to buy all of Zim's shares for $35 per share in cash, for a total value of approximately $4.2 billion.
Hapag-Lloyd is also a major player in the maritime transport industry. According to its data, it operates approximately 305 container ships, has nearly 400 offices in 140 countries, and its services connect more than 600 ports.
If it acquires the majority of Zim’s business , the combined group’s fleet will exceed 400 vessels, and its capacity will exceed three million standard containers, reinforcing its position as the world’s fifth-largest container shipping company.
The acquisition gives the German group a stronger presence on trans-Pacificand intra-Asian trade routes, as well as in the Atlantic, Latin America, and the Eastern Mediterranean. Therefore, Hapag-Lloyd does not view the deal as a side investment, but rather as a major step towards expanding its network and competing with international shipping giants.
Security objection and attempt to salvage the deal
According to Reuters, the deal faces opposition from Israeli Defense Minister Yisrael Katz, other officials, and Zim employees. Opponents fear that control of the majority of the shipping company will fall into the hands of a foreign entity, with some using the term "hostile parties" when discussing the potential risks.
To salvage the acquisition, Hapag-Lloyd revised its offer after rounds of talks with the Israeli Ministries of Economy, Finance, and Defense. According to the company and Reuters, the revised proposal aims to ensure Israel's continued access to key shipping routes, particularly those from Asia, and to prevent any foreign interference in the transport of sensitive cargo.
The proposed solution is based on effectively splitting Zim into two parts. The German group would acquire its core international operations, while the Israeli investment fund FIMI would establish an independent Israeli company called Zim Israel, starting with sixteen ships.
The new company will acquire the Zim brand and the rights to the "golden share," ensuring that a portion of the maritime activity remains under direct Israeli control. Hapag-Lloyd also proposed reducing the threshold for foreign ownership in Israel without prior notification from 24% to 10%. Fimi pledged not to list the new company's shares on any stock exchange outside of Israel.Until the Israeli government approves the new formula, the deal will remain suspended between two logics: a German company sees an opportunity to build a wider shipping network, and Israel is asking who can influence, even indirectly, its maritime lifeline when the next crisis occurs.
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