Catenaa, Monday, February 16, 2026- Hapag-Lloyd is buying Israeli competitor Zim Integrated Shipping Services for $4.2 billion, as shippers try to keep earnings up on low rates and volume reductions.
The German shipping company said Monday that it signed a deal to buy Zim for $35.00 a share in cash, following approval by both parties. The price is a 65% premium to Zim’s Friday closing price of $21.18.
Hapag said the deal will be funded from cash reserves and external financing of up to $2.5 billion.
It was said on Sunday that the board was in advanced talks to buy all shares in Zim, but at that time, the required approvals by the management board, supervisory board, and corporate bodies hadn’t been granted.
The deal is expected to be completed by the end of this year, Hapag said.
Zim is considered a strategic asset for Israel, so the state holds a “golden share” in the company, giving it control over certain strategic decisions such as ownership.
Hapag-Lloyd has therefore agreed with FIMI Opportunity Funds to form a company controlled by the private-equity group to assume the obligations arising from the special state rights.
Under the agreement, twelve ships and the assets required for the operation of three trade routes are to be transferred from Hapag-Lloyd or ZIM to the new company.
Any deal will require the consent of the state of Israel, Zim shareholders, and regulators.
The move comes after Zim appointed an independent board that has spent the last several months conducting a strategic review to assess a range of options, including a sale of the company, capital allocation options, and other measures to maximize shareholder value.
Zim recently reported a sharp drop in third-quarter earnings as freight rates tumbled and container volumes slipped, with the company warning that fourth-quarter conditions had weakened.
