Global container shipping line Hapag-Lloyd is acquiring Israeli shipping company ZIM Integrated Shipping Services in a $4.2bn (€3.54bn) deal.
Hapag-Lloyd is buying all of NYSE-listed ZIM’s shares at $35 per share, a price that represents a 58% premium to ZIM’s closing stock price prior to the deal being announced.
The deal also involves Israel-based private equity firm FIMI becoming the 100% owner of a standalone company that keeps the ZIM brand and headquarters in Israel as a “Golden Share” obligation to the State of Israel.
As part of the acquisition, Hapag-Lloyd will absorb ZIM’s global network and 99 chartered vessels, while FIMI will take ownership of the new ZIM entity, which will operate 16 vessels to manage Israel’s strategic trade routes.
The deal makes Hapag-Lloyd the fifth-largest container shipping company worldwide with a modern fleet of over 400 vessels, a standing capacity of over 3m twenty-foot equivalent TEU, a standard unit of measurement used in shipping and logistics, and an annual transport volume of more than 18m TEU.
Rolf Habben Jansen, CEO of Hapag-Lloyd, said: “ZIM is an excellent partner for Hapag-Lloyd. Customers will benefit from a significantly strengthened network on the Transpacific, Intra Asia, Atlantic, Latin America and East Mediterranean. We share the same ambitions: great customer service, outstanding operational quality, and a commitment to digital innovation – all powered by the expertise and passion of our people worldwide.
“We will use this opportunity to create the best team from the exceptional talent in ZIM and Hapag-Lloyd – in Israel and around the globe – and we commit ourselves to build a very substantial and long-term presence in Israel. Together, we will set new benchmarks of excellence and secure our position as the undisputed number one for quality in our industry.”
Yair Seroussi, chairman of ZIM’s board of directors, said the announcement is the culmination of a thorough strategic review conducted by ZIM’s board of directors dedicated to maximising shareholder value.
Seroussi added: “The decision reflects a comprehensive evaluation of all available options to ensure the best possible outcome for the company’s investors. We believe that it represents the most prudent and beneficial transaction for all ZIM stakeholders that further advances the tremendous value creation track record that we have established since our IPO.”
Ishay Davidi, founder and CEO of the FIMI Funds, said: “FIMI recognises and believes in the strategic importance for the State of Israel of a strong independent Israeli shipping company. We will create a stable Israeli company, the new ZIM, and view Hapag-Lloyd as a significant strategic partner for its on-going operations.
“New ZIM will integrate significant transatlantic capabilities, alongside additional shipping routes to Europe, Africa, the Mediterranean Sea and the Black Sea, supported by advanced global maritime transport capabilities, while continuing to place the customer at the centre of its operations.”
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