Israel’s Defense Ministry has formally opposed the proposed sale of Zim to Hapag-Lloyd, joining several government agencies that have raised concerns over the deal, according to Calcalist.
The proposed transaction is valued at approximately US$4.2 billion. Government officials are reviewing its potential impact on Israel’s maritime security and supply chains.
According to the Defense Ministry, the current structure of the deal does not adequately protect Israel’s security interests.
Officials are concerned that Zim Israel, which would continue operating as a separate entity after the merger of Zim’s international operations with Hapag-Lloyd, could see its role significantly reduced.
The ministry warned that the Israeli unit could be limited mainly to Mediterranean services. It also raised concerns over the future of direct shipping routes to the United States and the Far East.
Defense officials consider these routes strategically important because they support the transport of military equipment and other critical supplies during periods of conflict.
During a government meeting, Prime Minister Benjamin Netanyahu said the proposed sale is not currently on the government’s agenda.
Defense Minister Israel Katz confirmed that the ministry opposes the transaction. He also noted that the Israeli government holds a golden share in Zim, giving it the authority to intervene in the company’s operations when national security requires.
The Defense Ministry has been reviewing the proposed acquisition for several months. The assessment comes as Israel faces growing international sanctions, trade restrictions and boycotts linked to the war in Gaza.
Another concern relates to Hapag-Lloyd’s shareholder structure. Defense officials noted that investors from Qatar and Saudi Arabia are among the company’s shareholders. They also pointed to the Chilean government’s increasingly critical stance toward Israel.
According to the ministry, these factors could expose Israel’s access to key maritime trade routes to political pressure during future conflicts.
In a statement, the Defense Ministry said: “The Defense Minister has adopted the position of the ministry and its professional bodies, according to which the proposed sale of Zim does not adequately safeguard the security interests of the State of Israel.”
The Defense Ministry joins the Agriculture, Economy and Transportation ministries, as well as Israel’s Shipping Authority, in opposing the transaction.
Those agencies argue that the deal could weaken Israel’s maritime transport capability and threaten national supply chains. Around 90% of the country’s imports arrive by sea.