Shipping: Israeli authority slows down takeover: Shipping company ZIM not going to Hapag-Lloyd for now
The megadeal will not be approved for now - due to the involvement of Qatar and Saudi Arabia in the German shipping company. Will the German shipping company have to restart the process?
Rapid progress halted for Hapag-Lloyd as Israeli authorities suspend £4.2 billion takeover of ZIM shipping company. The Government Companies Authority (GCA) concluded its review on Tuesday evening, without making a final decision. The GCA needs to release a key element of the deal – transferring the "golden shares" of ZIM to FIMI, Hapag-Lloyd's Israeli partner.
These "golden shares" ensure the Israeli government's say in decisions affecting the country's supply. The Finance Ministry noted in a protocol on September 28th, that Qatar and Saudi Arabia's stakes in Hapag-Lloyd posed "a real risk of an anti-Israeli foreign influence." Qatar holds twelve percent, Saudi Arabia ten percent. The transaction is complex and politically sensitive.
The Israeli government fears supply chains disruptions during crises, for which they have contractually guaranteed access to part of ZIM's fleet. They also guarantee the "golden shares" to have strategic decision-making powers.
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