Hapag-Lloyd's $4.2 billion acquisition of Zim sparks Israeli security fears due to the company's strategic role in military logistics.
Germany's Hapag-Lloyd has agreed to buy Israel's Zim Integrated Shipping Services for US$4.2 billion, reported radio Deutsche Welle.
The deal would create a combined fleet of more than 400 vessels with a capacity exceeding 3 million TEU. Zim's board approved the merger, but Israel's government must sign off under special rights in the company's charter.
Zim is headquartered in Haifa and plays a role in emergency logistics and transporting US military aid. Israel views the line as a strategic asset, raising concerns about losing control amid regional instability.
Hapag plans to separate Zim's global container operations from a smaller Israel-focused entity owned by domestic fund FIMI. The new Zim would retain 16 modern vessels for strategic routes, while Hapag integrates the rest into its global network.
Israeli officials have voiced alarm. Haifa Mayor Yona Yahav urged the government to block the sale, while the port authority called it an 'existential threat.' About 800 of Zim's 1,000 workers staged a strike, fearing job losses.
Transport Minister Miri Regev has threatened to stop the deal and ordered a review. Final approval will require multiple government agencies and could take nine months.
Hapag expects annual synergies of EUR300 million (US$352 million) to EUR500 million from the takeover. The Hamburg-based carrier reported provisional EBIT of EUR1 billion in 2025, down from EUR2.6 billion in 2024, and sees the acquisition as a strategic expansion amid falling freight rates.
