Hapag-Lloyd signs a $4bn deal to acquire ZIM, forming the world’s fifth-largest container shipping line.
Hapag-Lloyd has signed a definitive merger agreement to acquire 100% of the shares of ZIM Integrated Shipping Services in a transaction valued at over US$4 billion, a move set to reshape the global container shipping landscape.
Upon completion, the acquisition will cement Hapag-Lloyd’s position as the fifth-largest container shipping company worldwide, with a modern fleet of more than 400 vessels, a standing capacity exceeding 3 million TEU, and annual transport volumes of over 18 million TEU.
Following confirmation of the deal, ZIM’s shares surged by 50%, while Hapag-Lloyd’s shares fell by 8%, according to Reuters.
Commenting on the merger, Hapag-Lloyd CEO Rolf Habben Jansen said the combination would significantly strengthen customer offerings across Transpacific, Intra-Asia, Atlantic, Latin America and East Mediterranean trades. He added that the group aims to build a best-in-class global team while committing to a long-term and substantial presence in Israel, setting new benchmarks for quality, service and digital innovation.
As part of the transaction, Hapag-Lloyd has also entered into an agreement with FIMI, Israel’s largest private equity fund. Subject to approval by the State of Israel, the arrangement will transfer ZIM’s Special State (Golden) Share to a newly created FIMI subsidiary. A newly established container line will begin operations with 16 modern, efficient vessels, assume responsibility for the Golden Share, and continue operating under the ZIM brand.
FIMI founder and CEO Ishay Davidi said the fund views it as strategically important for Israel to retain an independent national shipping company, positioning “New ZIM” with enhanced transatlantic strength and expanded routes across Europe, Africa, the Mediterranean and the Black Sea.
ZIM President and CEO Eli Glickman highlighted the company’s turnaround since 2017, noting that ZIM moved from negative equity to industry leadership and, since its January 2021 IPO, has distributed US$5.7 billion in dividends. He added that, once the transaction is completed, total capital returned to shareholders will reach approximately US$10 billion, more than five times ZIM’s market value five years ago and around 45 times the capital raised at IPO.
The deal has triggered labour unrest, with ZIM employees calling a strike at the company’s Haifa headquarters on 15 February, according to Reuters. The company said discussions are ongoing with unions to prevent operational disruption.
Source: EUROFRUIT
