Hapag-Lloyd plans to acquire 100 per cent of the shares of ZIM, the world’s tenth largest container shipping line, for a total amount of over USD 4 billion. The agreement to this effect was signed on 16 February.
FIMI, Israel’s largest and leading private equity fund, will take ownership of a carved-out container liner business that will serve some of the most important strategic trade-lanes, seamlessly connect to the global network of Hapag-Lloyd and in combination enhance and secure the global maritime connectivity for the State of Israel. The new container line will start with sixteen modern, sizeable, and efficient vessels and take over full responsibility for ZIM’s Golden Share as well as the ZIM brand.
The completion of the envisaged transactions is subject, among others, to approval by ZIM’s shareholders and the relevant regulatory authorities.
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Fifth largest container shipping company
The business combination of Hapag-Lloyd and ZIM would secure Hapag-Lloyd’s market position as the fifth-largest container shipping company worldwide with a modern fleet of over 400 vessels, a standing capacity of over 3 million TEU, and an annual transport volume of more than 18 million TEU. The combined business would strengthen the network on all major global trades and consolidate leadership in key growth markets.
The transaction is estimated to generate several hundred million USD of annual synergies. Hapag-Lloyd and ZIM will leverage the highly skilled workforce and cutting-edge technologies of both companies to build a stronger combined team.
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Strengthened network and substantial Israeli presence
‘Customers will benefit from a significantly strengthened network on the Transpacific, Intra Asia, Atlantic, Latin America and East Mediterranean,’ says Rolf Habben Jansen, CEO of Hapag-Lloyd. ‘We share the same ambitions: great customer service, outstanding operational quality, and a commitment to digital innovation.’
He adds: ‘We commit ourselves to build a very substantial and long-term presence in Israel. Together, we will set new benchmarks of excellence and secure our position as the undisputed number one for quality in our industry.’
‘Today’s announcement follows a thorough strategic review by ZIM’s Board aimed at maximising shareholder value,’ says Chairman Yair Seroussi. ‘After evaluating all options, we believe this is the most prudent and beneficial outcome for stakeholders and builds on the value created since our IPO.’
FIMI Funds Founder and CEO Ishay Davidi added that his company believes in the strategic importance of a strong, independent Israeli shipping company: ‘We will establish a stable “new ZIM”, with Hapag-Lloyd as a key strategic partner.’
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Competitors for the time being
Until the closing of the transaction, Hapag-Lloyd and ZIM will remain competitors and do ‘business as usual’. Their operational collaboration will stay limited to existing vessel sharing and slot charter agreements. The necessary approvals of regulatory authorities and ZIM shareholders are expected by late 2026.
Picture by Hapag-Lloyd.
