Hapag-Lloyd nears deal to buy Israeli rival ZIM

Container shipping group Hapag-Lloyd said it is in advanced negotiations to acquire Israeli rival ZIM Integrated Shipping Services, a deal that would consolidate its position as one of the world's biggest ocean shipping companies.

No binding agreements have yet been signed and approval from Israel's government would be required based on ZIM's articles of association, Hapag-Lloyd said in its statement on Sunday.

Israeli newspaper Globes reported on Sunday that Hapag-Lloyd, together with partner FIMI Opportunity Funds, an Israeli private equity firm, had won a competitive bidding for ZIM. Offering more than $3 billion, the German shipping giant will buy ZIM's international operations, while FIMI will acquire the Israeli operations, Globes reported.

JP Morgan analysts said a deal would allow Hapag-Lloyd to grow its global market share from seven per cent to just under nine per cent, cementing its position as the fifth-largest ocean shipping company without having to boost investment in a drawn-out process.