Hapag said in its statement that talks were well advanced for FIMI to take on the obligations under the Israeli state’s rules.
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Container shipping group Hapag-Lloyd said it is in advanced negotiations to acquire Israeli rival ZIM Integrated Shipping Services , a deal that would consolidate its position as one of the world’s biggest ocean shipping companies.
No binding agreements have yet been signed and approval from Israel’s government would be required based on ZIM’s articles of association, Hapag-Lloyd said in its statement on Sunday.
Israeli newspaper Globes reported on Sunday that Hapag-Lloyd, together with partner FIMI Opportunity Funds, an Israeli private equity firm, had won a competitive bidding for ZIM.
Offering more than $3 billion, the German shipping giant will buy ZIM’s international operations, while FIMI will acquire the Israeli operations, Globes reported.
JP Morgan analysts said a deal would allow Hapag-Lloyd to grow its global market share from 7 per cent to just under 9 per cent, cementing its position as the fifth-largest ocean shipping company without having to boost investment in a drawn-out process.
Hapag said in its statement that talks were well advanced for FIMI to take on the obligations under the Israeli state’s rules. The Israeli government has a so-called “golden share” in the company, which gives it control over that part of the business, said Globes.
ZIM, valued at almost $2.7 billion as of Friday’s market close, said in November it had been reviewing its strategic options for several months after receiving a non-binding takeover proposal.
“This can be considered as a play to gain extra capacity near term (in lieu of fleet capex) … Delivery slots at shipyards are not readily available near term,” JP Morgan analysts said in a note.
Hapag said the transaction would require regulatory approvals as well as a vote by ZIM’s shareholders.
