German carrier Hapag‑Lloyd has agreed to acquire Israeli shipping line ZIM Integrated Shipping Services (ZIM) for US$4.2 billion, offering US$35 a share in cash, a price that represents a significant premium over ZIM's recent trading levels.
The deal, expected to close by late 2026 pending shareholder and regulatory approvals, would reinforce Hapag‑Lloyd's position as the world's fifth‑largest container line.
ZIM said its board has unanimously approved the transaction. The closing remains subject to customary conditions, including reviews by regulators and the State of Israel under the requirements tied to its Special State Share.
Until the deal is completed, the announcement said Hapag-Lloyd and ZIM will remain separate independent companies and will continue to maintain "business as usual."
"Hapag-Lloyd signed an agreement with ZIM Integrated Shipping Services Ltd., the world's 10th largest container shipping line, under which Hapag-Lloyd will acquire 100% of ZIM's shares," Hapag-Lloyd said.
The German shipping company noted that once the merger is closed, it aims to build a "stronger, more seamless network" and intend to operate a modern fleet of over 400 vessels with a capacity exceeding 3 million TEUs.
Together with ZIM, Hapag-Lloyd said it plans to expand in attractive growth markets and enhance its services across key global trades – including Transpacific, Intra Asia, Atlantic, Latin America, and East Mediterranean, which will be complemented by Hapag-Lloyd's participation in the Gemini network.
ZIM said the deal would also enhance both carrier's capabilities with the large, modern fleet, expanded capacity, and an annual cargo volume of more than 18 million TEU in 2027.
"New ZIM" to serve main global trade routes
In connection with the deal, ZIM said Hapag‑Lloyd has signed a binding memorandum of understanding with Tel-Aviv based private equity fund FIMI under which Israel's Special State Share in ZIM would be transferred to a new FIMI‑owned subsidiary, subject to government approval.
FIMI will establish a new Israel‑based carrier, "New ZIM," operating under the ZIM trademark with its own fleet and liner services. The company will be owned and managed by FIMI and supported by a long‑term strategic partnership with Hapag‑Lloyd to help launch operations.
The new entity will start with 16 vessels serving major global routes into Israel and will receive commercial support from Hapag‑Lloyd, including access to the Gemini network.
"We expect the closing of this transaction by the end of 2026. Until then, Hapag-Lloyd and ZIM will continue to operate independently, maintaining collaboration only within existing vessel-sharing and slot charter agreements. Additionally, Hapag-Lloyd will continue to build on its successful partnership with Maersk in the Gemini Cooperation."
ZIM CEO Eli Glickman said the company's turnaround over the past several years has sharply strengthened its financial position and created substantial returns for shareholders.
"I am incredibly proud of the strategic transformation we have executed at ZIM over recent years, which has generated exceptional value for our shareholders," he added, as he highlighted ZIM's fleet modernization, including the addition of 46 new LNG‑powered and conventionally fueled vessels; expanded use of LNG, now covering about 40% of operated capacity; more than US$1 billion invested since 2021 to renew equipment; growth in car‑carrier services; long‑term LNG supply agreements with Shell; and advances in digital tools, data analytics and AI to improve operations and commercial performance.
Yair Seroussi, chairman of ZIM's Board of Directors said the transaction with Hapag-Lloyd is the "culmination of a thorough strategic review" carried out by ZIM's Board of Directors. "We believe this represents the most prudent and beneficial transaction for all ZIM stakeholders. The decision to enter into a transaction with Hapag-Lloyd reflects our commitment to maximizing value for shareholders through a competitive bidding process, while ensuring the best possible outcome for the company, our employees and the State of Israel."
ZIM entered the market downturn with declining earnings and a sharply reduced valuation after the post‑pandemic collapse in freight rates. The company had been undergoing a months‑long strategic review as its share price fell far below its 2021 highs, making it a takeover target.
The transfer of Israel's "golden share" in ZIM to a newly formed Israeli carrier owned by FIMI, which will retain a portion of ZIM's domestic‑focused operations, preserves Israel's national‑interest rights while allowing Hapag‑Lloyd to acquire the global business.
