Zim Integrated Shipping Services has confirmed media reports Hapag-Lloyd is interested in acquiring the Israeli flag carrier.
But Zim employees are urging Israel’s government to block any deal over national security concerns because Saudi and Qatari investors hold a significant share in the German shipping company.
Zim (NYSE: ZIM) is the world’s tenth-largest liner and a merger with fifth-ranked Hapag-Lloyd (HLAG.DE) would give the combined entity close to a 10% share of the global container market, according to Alphaliner. Only Mediterranean Shipping Co. of Switzerland (21.3%), Denmark’s Maersk (13.9%), CMA CGM of France (12.3%) and China’s Cosco (10.7%) claim double-digit market shares.
Reports also named MSC and Maersk (MAERSK-B.CO) as having interest in Zim.
Zim’s board in a statement confirmed a review with “several entities” of a possible sale but offered no details. Zim in an email to FreightWaves said it had no comment.
A spokesman for Hapag-Lloyd on Saturday in an email to FreightWaves said that the company does not comment on market rumors.
The Israeli government, which owns a golden share in Zim, is being urged by Zim employees to block a sale over security concerns, the Globes newspaper of Tel Aviv reported. They cite Qatar and Saudi investment as shareholders of near 23% of the German carrier.
Zim and Hapag-Lloyd did not immediately respond to messages from FreightWaves.
This article was updated Dec. 6 to add information from Hapag-Lloyd.
This article was updated Dec. 7 to add no comment from Zim.
Find more articles by Stuart Chirls here.
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