Hapag-Lloyd bids for ZIM, faces worker opposition
International shipping leader Hapag-Lloyd has submitted an initial offer to acquire Zim Integrated Shipping Services, according to Globes, an Israeli business news outlet. While formal negotiations have not yet commenced, other prominent shipping companies, including MSC and Maersk, have also indicated their interest in a potential acquisition.
Zim Integrated Shipping Services, currently valued at $2.4 billion, holds the ninth position globally in the shipping industry with a 2.5% market share. This potential acquisition follows a period of significant changes for Zim, including the divestment of its controlling stake by Kenon Holdings and a buyout proposal submitted by Zim CEO Eli Glickman in conjunction with shipping magnate Rami Ungar.
However, Zim’s workers’ committee has voiced strong opposition to a sale to Hapag-Lloyd. Citing national security concerns, Chairperson Oren Ksafim expressed apprehension that foreign ownership, particularly by Qatari and Saudi investors, could compromise Israel’s maritime supply chain during future conflicts. The committee has formally requested the government to exercise its “golden share” option to prevent the transaction.
Zim’s stock closed at $19.87 per share, exceeding the average analyst target of $14.30. Current analyst sentiment is divided, with one rating a “Buy,” three recommending “Hold,” and three advising “Sell.”