In a merger of two of the world’s largest container shipping lines, Hapag-Lloyd of Germany will acquire Israel’s Zim Integrated Shipping Services for $4.2 billion.
Zim (NYSE: ZIM) confirmed an earlier report by FreightWaves in an announcement Monday.
The all-cash deal values Zim at $35 per share, or $4.2 billion, a 58% premium to its prior-day closing price and 126% premium to its unaffected stock price.
Zim said the sale is structured so that a new Israel-based company, New ZIM, will acquire a portion of its business. Zim did not provide further details. But the new company, financed by an Israeli private equity investor, ensures state control of the carrier’s owned vessels, for security purposes.
Hapag-Lloyd is one-third owned by state funds of Qatar and Saudi Arabia.
The deal, which requires approval by Zim shareholders and regulators, is expected to close in late 2026.
Hapag-Lloyd (HLAG.DE) is the world’s fifth-largest liner operator, with capacity of 2.38 million twenty foot equivalent units (TEUs), or 7.1% of the global total, according to data from Alphaliner. Zim ranks 10th at 704,000 TEUs. Hapag-Lloyd said that the merger boosts its fleet to 400 vessels, with capacity exceeding 3 million TEUs and annual transport volume of more than 18 million TEUs. leaves Hapag-Lloyd outside the top four carriers, but widens its lead over Ocean Network Express at six.
Hapag-Lloyd is a partner with second-ranked Maersk (MAERSK-B.CO) in Gemini, the global east-west network.
“The combined company will increase its service offerings to customers through an expanded global network on key trans-Pacific, intra-Asia, Atlantic, Latin America and East Mediterranean trades,” Zim said in the announcement.
The Israeli investor, FIMI Opportunity Funds, will back New ZIM with 16 vessels serving global trade routes to Israel. It will have the commercial support of Hapag-Lloyd, and access to the Gemini network.
Find more articles by Stuart Chirls here.
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