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Hapag-Lloyd agrees $4.2bn all-cash takeover of ZIM

Hapag-Lloyd has agreed to acquire Israel’s ZIM Integrated Shipping Services in an all-cash deal valuing ZIM’s equity at about $4.2bn, according to a Hapag-Lloyd press release.

The Hamburg-based liner operator has signed a merger agreement to acquire 100% of ZIM’s outstanding shares for $35.00 per share in cash.The transaction will be executed through the merger of an Israeli Hapag-Lloyd subsidiary with ZIM, leaving ZIM as a wholly owned subsidiary following completion.Hapag-Lloyd said the deal will be funded from cash reserves and external financing of up to $2.5bn.

Completion is subject to approval from the State of Israel linked to special rights embedded in ZIM’s corporate governance, a shareholder vote at ZIM and other regulatory clearances, including antitrust and investment law approvals.The companies expect approvals and closing by late 2026.

To address Israel’s “Special State” rights, Hapag-Lloyd has entered into an agreement with FIMI Opportunity Funds, under which a company controlled by FIMI will assume obligations connected to those rights

A newly established Israeli container line will start with 16 vessels, assume ZIM’s Golden Share obligations and operate under the ZIM brand.

Hapag-Lloyd said the combined group would operate more than 400 vessels with capacity exceeding 3m teu and annual transport volumes of more than 18m teu, with expected annual synergies of “several hundred million USD”.

ZIM president and chief executive Eli Glickman said ZIM has distributed $5.7bn in dividends since its January 2021 initial public offering, with total capital returned expected to reach about $10bn upon completion.

Hapag-Lloyd AG is a Germany-based container liner shipping company with a global service network spanning major east–west and north–south trade lanes and interests in terminal and infrastructure assets. 

ZIM Integrated Shipping Services Ltd is an Israel-based container liner company founded in 1945, operating internationally with a focus on a mix of mainlane and niche trades 

Source: Maasmond Maritime

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