Shipping industry set to consolidate as Hapag-Lloyd to buy Israeli firm for 58% premium
By Steve Goldstein
Hapag-Lloyd is paying $4.2 billion to buy ZIM.
The shipping industry is set to consolidate after Germany-based Hapag-Lloyd agreed to buy Israel's ZIM Integrated Shipping Services for $4.2 billion.
Hapag-Lloyd (XE:HLAG) said it would pay $35 a share for New York Stock Exchange-listed ZIM (ZIM), which closed Friday at $22.20.
ZIM shares jumped 35% to $30.06, a move indicating there's a risk the offer won't succeed.
Hapag-Lloyd shares tumbled 8% in Frankfurt trade on Monday, though the stock rose 3% on Tuesday.
Hapag-Lloyd will partner with FIMI Opportunity Funds, an Israeli private-equity firm, to attempt to get the Israeli government's approval. The private-equity firm will acquire 12 ships and the assets required to operate three trade routes. It will also get the rights to use the ZIM name.
The rest of ZIM's business will go to Hamburg, Germany-based Hapag-Lloyd, which said it would vault from the 10th to the fifth-largest shipping line with a fleet of over 400 vessels.
ZIM had previously said it was considering offers from multiple companies and turned down a bid from CEO Eli Glickman.
ZIM said the agreed bid is a 126% premium to its unaffected stock price of $15.50 on Aug. 8, 2025, prior to market speculation.
-Steve Goldstein
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02-17-26 0750ET
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