Saudi-Backed Bid for ZIM Triggers Israeli Uproar Over National Security
A potential acquisition of ZIM by Hapag-Lloyd, partly owned by Saudi and Qatari interests, has sparked national security concerns in Israel. ZIM's employees have urged the government to block the deal, citing risks due to the strategic importance of maritime trade. The Israeli government holds a golden share, complicating the acquisition process. Meanwhile, other bidders are emerging, and ZIM's board is considering all options without commitments until a deal is finalized.
A German bidder, Middle Eastern capital, and a politically loaded supply-chain warningZIM has suddenly become one of the most sensitive shipping assets on the market. Hapag-Lloyd, the 20-billion-euro German carrier, has signaled interest in acquiring ZIM, a move that could be transformational for the sector. But the complication is baked into Hapag-Lloyd's shareholder list: Saudi Arabia and Qatar together hold about 35% of the company. That detail alone has pushed ZIM's strategic reviewalready underway with several unnamed bidders submitting proposalsinto a very different conversation. The board has kept its language tight, confirming only that all alternatives, including a possible sale, remain on the table as the process continues.
The loudest reaction isn't coming from investorsit's coming from ZIM's own workers. On Wednesday, the company's employees wrote directly to Israel's Minister of Transport, urging the government to block any Hapag-Lloyd deal. Their concern is straightforward: 98% of Israel's trade by weight moves by sea, and they argue that indirect exposure to Saudi or Qatari investment could be a national-security risk. They also point out that ZIM was the only carrier that continued transporting food, medicine, ammunition, and critical military equipment during the Swords of Iron war. With the state holding a golden share that must approve any foreign acquisition, this is no longer a simple M&A debateit possibly becomes a test of how Israel defines strategic control in a volatile region.
Behind the scenes, the bidding field is getting more crowded. Another international shipping player has reportedly been in talks with Evercore, potentially at a valuation above the offer already rejected by ZIM's board. That earlier bid, led by CEO Eli Glickman and businessman Rami Ungar at $25 per share, implied a $2.3-$2.4 billion valuationwell above ZIM's trading value at the timebut the board, chaired by Yair Seroussi, passed on it and opted for a broader global search. Now, with no dominant shareholder and the possibility of a new controlling interest emerging, ZIM's review could be entering a pivotal phase. The board has made one point unmistakably clear: no names, no numbers, and no commitments until a deal is signedor the process ends.
