German shipping company Hapag-Lloyd, which trades in Frankfurt with a market value of about 20 billion dollars, is seeking to acquire Zim, Israel’s largest maritime carrier. But Zim’s workers’ committee is pushing back, warning that the presence of Qatari and Saudi sovereign funds among Hapag-Lloyd’s shareholders poses a national security risk.
Hapag-Lloyd’s largest shareholders are German businessman Klaus-Michael Kühne and Chilean shipping firm CSAV, each holding roughly 30 percent. They are followed by the City of Hamburg with about 14 percent, Qatar’s state investment authority with around 12.5 percent and Saudi Arabia’s sovereign wealth fund with about 10 percent.
Zim’s workers’ committee sent a letter Wednesday to Transportation Minister Miri Regev urging her to block any sale, saying foreign control could endanger Israel’s supply chain and give indirect influence over a critical maritime lifeline to shareholders from countries with no formal ties to Israel.
Israel holds a “golden share” in Zim that grants the state veto power over any sale of more than 24 percent of the company. Approval for any acquisition would require signoff from the Transportation Ministry and the prime minister. Several international firms are believed to be exploring bids after businessman Eli Glickman joined dealer Rami Unger in submitting an initial offer.
The committee argues that Zim is the only shipping company that regularly calls at Israeli ports and directly employs about 1,000 workers in the country. It noted that 98 percent of Israel’s trade by weight relies on maritime transport and said Zim was the only carrier that continued sailing to Israel during the war, bringing food, medicine, ammunition and other critical supplies. “If the company is transferred to hostile foreign ownership, the state will lose that capability entirely,” the committee said.
Zim’s board announced last week that several companies have expressed interest in a sale, in a process managed by Evercore. “The board is conducting a strategic review of potential alternatives to maximize shareholder value, including a possible sale,” the company said. “We will not comment on candidates or proposals until an agreement is reached or the review is concluded.”
Oren Caspi, head of Zim’s workers’ committee, told Calcalist: “Hapag-Lloyd wants to buy Zim without the state’s golden share. There is no chance we will agree to that.” He said the committee will oppose any foreign buyer, arguing it would threaten the company’s status as an Israeli carrier. Caspi said he plans to meet Regev next week to outline the risks of selling to a foreign-owned firm and especially to Hapag-Lloyd. “There is no chance we will agree to a company with shareholders from Saudi Arabia and Qatar holding this strategic asset, especially after what happened on October 7,” he said.
Sources involved in the process said the German firm has proposed possible changes to the structure of the golden share but is not conditioning a purchase on eliminating it.