Seatrade-Maritime: Hapag-Lloyd reshapes Zim deal to address Israel security concerns

Published by Seatrade-Maritime

Following the latest round of talks with Israeli Government officers, Hapag-Lloyd said it would submit a revised proposal for the acquisition of Zim Line by the end of September.

The acquisition, first announced in February of this year, has been the subject of close scrutiny with some members of the Israeli parliament, the Knesset, concerned about the ongoing security of the country following the sale.

Hapag Lloyd CEO, Rolf Habben Jansen said: “We have listened carefully to the needs raised during our discussions with the Israeli government and the relevant authorities. Together with our partners, we are now developing an improved proposal designed to further strengthen Israel’s maritime security and independence.”

Private equity company FIMI Opportunity Funds will operate New Zim, a 16-vessel carrier formed of Zim Integrated Shipping Services’ fleet. Concerns were raised in February, following the announcement of the sale, that 16 ships would not be sufficient to meet Israel’s security requirements.

the carrier will work with Israeli officials to, “Secure Israel’s access to key shipping routes, including routes from Asia, and strengthen the protections provided under the Golden Share framework.”

In addition to the fleet and service connections, some politicians raised the question of Hapag-Lloyd shareholders, who include the Qatari and Saudi sovereign wealth funds with a substantial combined share of 22.5% in the German liner company.

“The agreement will also prevent any foreign interference in the transportation of Israel’s sensitive cargo, representing a significant improvement over the current arrangement,” commented Habben Jansen. Who added, “We believe this transaction would mark another important milestone in the close relationship between Germany and Israel.”