Source: Splash 247
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.
