What will be the fate of the ZIM Integrated Shipping Services (NYSE: ZIM) deal? The announcement this week by the Government Companies Authority may prolong the path to completing the deal, but it does not cancel it. On the contrary, Hapag-Lloyd and FIMI are expected to form a revised plan and submit a new request for approval, which will then be re-examined by government officials.
This development follows the publication of opinions by the Ministry of Finance and the Prime Minister's Office opposing the deal in its original format. The following day, the Government Companies Authority (GCA) announced the termination of the process that had been underway on that specific plan.
A letter sent by GCA director Roi Kahlon to ZIM Chairman Yair Seroussi said that if the acquiring parties submit a revised plan, as they have indicated they intend to do, they must submit a "new, complete, and detailed request that is binding and approved by ZIM’s authorized institutions and all parties to the deal."
In other words, the deal does not necessarily return to square one, but must undergo a renewed regulatory process. The buyers will certainly wish to leverage the timeframe available under the deal's terms (June 2027) to try and salvage it.
The buyers are not giving up
Hapag-Lloyd and FIMI announced in February the acquisition of ZIM for about $4.2 billion ($35 per share.) The deal entails acquiring all of ZIM’s shares, delisting the company from the New York Stock Exchange, and splitting its operations. The international business is set to become part of Germany’s Hapag-Lloyd, while the Israeli operations, to be named NEW ZIM will be held by Israeli private equity fund FIMI, led by Ishay Davidi.
Although the deal was approved by a large majority ZIM’s shareholders, its completion requires a series of regulatory approvals, foremost among them, approval from the State of Israel, which holds a "golden share" in the company.
There has been little progress in the approval process over the past few months, though the acquiring parties have recently held discussions with government officials. Following issues raised during these talks, Hapag-Lloyd and FIMI announced they would submit an improved proposal designed to address the concerns raised and, according to them, strengthen Israel’s maritime independence, national security, and supply chain resilience. Now, a letter from the GCA has clarified that once the proposal is finalized, simply updating the existing application will not suffice; a new, complete application must be submitted.
Avi Licht steps in
Adv. Avi Licht, formerly the Deputy Attorney General, is spearheading the process on behalf of the buyers in their dealings with government and regulatory bodies. Licht is working with regulators to advance a framework addressing the state's concerns and provides a foundation for the deal's approval.
Licht’s involvement takes on special significance given that discussions on the deal are no longer confined to terms such as price, deal structure, and business viability. At this stage, the question of the ZIM sale has also become an issue of national security, maritime independence, and Israel's foreign relations.
One of the focal points of opposition to the deal is Hapag-Lloyd’s ownership structure. According to the published opinion, government funds from Qatar and Saudi Arabia hold approximately 12.3% and 10.2% of the German company's shares, respectively.
The Ministry of Finance’s opinion states there is a concern that this foreign influence could be exploited during political or diplomatic crises to harm operations linked to Israel or to exert pressure on the country. It was further noted that ZIM Israel’s reliance on Hapag-Lloyd, specifically on agreements, Hapag-Lloyd-owned ports, and container supplies, could create leverage for influence over issues that do not align with Israel's interests. The buyers believe these concerns can be addressed through the revised plan.
A political issue
Alongside the regulatory debate, a political struggle is also unfolding around the deal. Reports indicate that the ZIM workers' committee is lobbying Likud ministers and government officials, including Minister of Defense Israel Katz, in an effort to block the deal. This political opposition is nothing new. Prime Minister Benjamin Netanyahu said July that the deal was "off the table entirely," and other ministers have also expressed reservations.
A source familiar with the matter notes that the professional stance of the relevant authorities has been consistently negative throughout the process, adding, "We didn't need a directive from the top" to reach that conclusion. However, the source suggests that the involvement of Drorit Steinitz, the acting director general of the Prime Minister's Office, hints at underlying political and diplomatic interests. FIMI may be banking on a future government, whichever one is elected, facilitating the deal's approval. A calculation potentially influenced by the financial guarantee provided by Ishay Davidi’s wife to Gadi Eisenkot’s Yashar party.
Yet, from the perspective of the buyers, the story is far from over. As long as no final decision rejecting the deal has been made, the option to submit a revised proposal remains open. Under the original agreement, the buyers have until June 2027, following a contractually stipulated extension, to obtain the necessary regulatory approvals.
This means the buyers can use the coming months to try to structure a deal that addresses the concerns raised by government officials, while waiting for political developments to unfold.
From their perspective, a new deal proposal submitted after the elections might be evaluated within a political and regulatory environment different from the one in which the original proposal was reviewed. While this offers no guarantee that the deal will be approved, it explains why the buyers are in no rush to abandon it.
In the meantime, the market is reacting primarily to the uncertainty. ZIM’s stock, which had recently climbed to a more-than-one-year high amid expectations for an improved deal structure, fell this week following negative opinions issued by the Ministry of Finance and the Prime Minister's Office. At the same time, reports suggest that the Ministry of Economy has shifted its stance following discussions with the buyers and now supports the deal's approval.
The announcement by the GCA on the termination of the original process has not, so far, triggered a further sharp reaction in the share price. ZIM is currently trading at a market cap of $3.534 billion, about 18% below the deal's valuation - a gap that shows the market's uncertainty on the deal's completion.
Published by Globes, Israel business news - en.globes.co.il - on October 1, 2026.
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