The proposed sale of ZIM Integrated Shipping Services to Hapag-Lloyd and Israeli private equity firm FIMI is facing its most serious political challenge yet after prime minister Benjamin Netanyahu and defence minister Israel Katz came out against the deal.
According to Israeli media, the two have urged that the transaction be scrapped, arguing that it does not adequately protect Israel’s security interests. Katz issued a statement saying the proposed structure failed to preserve those interests, sharply increasing pressure on regulators and government ministries reviewing the transaction.
The deal, signed earlier this year, values ZIM at about $4.2bn, or $35 per share. Under the proposed structure, Hapag-Lloyd would acquire much of ZIM’s international activity, while FIMI would take the Israeli-linked operations, headquarters, government relationship and responsibility for the state’s golden share.
The structure was designed to preserve an Israeli shipping core while allowing the German carrier to absorb key international assets. But it has not calmed opposition. Critics argue ZIM remains a strategic national asset, especially after the war highlighted its importance for emergency logistics, national resilience and maritime supply security. A Knesset panel previously warned that ZIM played a vital role during the conflict, including in military and security planning.
The deal has also drawn scrutiny because Hapag-Lloyd’s shareholder base includes Qatar’s sovereign investment arm and Saudi Arabia’s Public Investment Fund, alongside major German and Chilean holders. That has made the transaction politically sensitive in Israel, even though FIMI has argued the new ZIM would remain a strong Israeli shipping company.
For Hapag-Lloyd, losing ZIM would be a major setback to its growth strategy. Linerlytica projections suggest Japanese carrier Ocean Network Express (ONE) would surpass Hapag-Lloyd size-wise by early 2028 if the ZIM sale falls through.
