Hapag-Lloyd Revises $4.2 Billion Offer to Acquire ZIM

German Hapag-Lloyd is changing the terms of its $4.2 billion offer to acquire Israeli shipping company ZIM. The company decided to revise the offer after the deal met with resistance in Israel.

The transfer of ZIM into foreign hands is opposed by its employees, Israel's defense minister, and other government representatives. Their main concern is national security.

Under the new plan, part of ZIM's operations will remain under Israeli control and be transferred to private investment firm FIMI. A separate company with 16 vessels will also pass into FIMI's ownership. This way, Israel will retain a direct link to international shipping routes.

Hapag-Lloyd is also prepared to reduce the permitted stake for the foreign investor from 24% to 10%.

Company representatives have already met with Israel's Ministries of Economy, Finance, and Defense. The revised offer is expected to be presented to the government this month.

Source: Reuters