Hapag-Lloyd is working with the Israeli government on improvements to its proposed $4.2 billion cash purchase of ZIM Integrated Shipping Services, the German shipping group said on Monday.The proposed deal has faced
Hapag-Lloyd is working with the Israeli government on improvements to its proposed $4.2 billion cash purchase of ZIM Integrated Shipping Services, the German shipping group said on Monday.
The proposed deal has faced heavy opposition in Israel, including ZIM's workers, Defence Minister Israel Katz and other government officials, who argue that it undermines national security by transferring Israel's shipping to a foreign company.
"We are now developing an improved proposal designed to further strengthen Israel's maritime security and independence," said Hapag-Lloyd CEO Rolf Habben Jansen.
"The revised proposal will secure Israel's access to key shipping routes, including routes from Asia," Habben Jansen added in a statement.
Hapag-Lloyd, which aims to secure its position as the world's fifth-largest shipping group, said that the deal would establish ZIM as a fully Israeli-controlled container shipping company owned by Israeli private equity fund FIMI.
In a related deal, FIMI plans to acquire a business with 16 vessels carved out from ZIM that secures direct global maritime connections for Israel through a new company called ZIM Israel.
Hapag-Lloyd said it had held a number of rounds of meetings with Israeli officials that included the economy, finance and defence ministries "to revise structural elements of the
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