Report: Container Majors Are All Interested in Buying Zim

Just days after the board of directors of the Israeli shipping company Zim confirmed they were considering alternatives for the future of the company, a report surfaced saying the industry majors are all expressing interest in the company. A sale of Zim, which is publicly traded on the New York Stock Exchange, however, would be complicated by the strategic importance of the company to Israel and restrictions placed by the government.

The Israeli news outlet Globes reported today, December 4, that Hapag-Lloyd has made an offer, although they believe it is “in the initial stages and negotiations have yet to begin.” Globes also reports that Maersk and MSC Mediterranean Shipping Company have also expressed initial interest. MSC, which is a private company, has long been reported to have significant investors from Israel.

The brewing bidding war for the ninth-largest container carrier was set off by the company’s current president and CEO, Eli Glickman, who has led the company since 2017. Glickman is reported to be working with Israeli investor and shipping magnate Rami Ungar and made an offer that also includes other Zim senior executives to the board of Zim to acquire the company. The board confirmed on November 25 that it had received the offer and was looking at its alternatives.

Glickman is credited with leading a turnaround of a nearly bankrupt carrier and turning it into a strong niche competitor. In addition to maintaining a critical lifeline for Israel, Zim has grown offerings such as its express container service targeted at Asian electronics manufacturers, and is among the first companies to adopt LNG and new technologies. The Gaza war and the overall market pressures in the container sector have made Zim a volatile investment since it went public in 2021, which was also compounded by the decision of long-time investor Idan Ofer’s Kenon Holdings to liquidate its Zim holdings in 2024.

An acquisition of Zim could be complicated by a Special State Share that was issued to the Israeli government in 2004 when the company was privatized. A potential buyer that would exceed 24 percent of the stock must first notify Israel, and a position over 35 percent requires Israeli approval. The special share requires the company to remain incorporated in Israel, and at least a majority of the members of the Board of Directors, including the chairperson of the board and chief executive officer, must be Israeli citizens.

The company must also maintain a fleet of at least 11 vessels, with at least three being cargo vessels, but it currently has a waiver permitting it to own fewer than the required number of ships. The State of Israel must also consent in writing to any winding-up, merger, or spin-off unless the Special State Share would remain effective.

Globes reports opposition is already growing against a potential sale, and especially to Hapag. It writes that a workers committee is citing the strategic importance of Zim to the country’s trade. It is also highlighting the large investments by Qatar and Saudi Arabia in Hapag-Lloyd.

The Zim board has said that it is considering potential value creation alternatives, including a sale of the company and capital allocation and return opportunities. It confirmed in November that it had received multiple proposals in addition to the proposed management-led buyout. No timeline has been announced for a potential decision on the future of the company, which marked its 80th year in 2025.