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(Sharecast News) - German shipping giant Hapag-Lloyd said on Monday that it has agreed to buy ZIM, Israel's national flag carrier, for $4.2bn in cash.
Under the terms of the agreement, Hapag will pay $35 per share for ZIM, which is the tenth largest container shipping line in the world.
The acquisition price is a 58% premium to ZIM's share price on Friday and a 126% premium to the unaffected share price of $15.50 on 8 August 2025, prior to market speculation of a deal.
Hapag said the merger would secure its market position as the fifth largest shipping line in the world with a modern fleet of over 400 vessels, a capacity of more than 3 million TEU (Twenty-foot Equivalent Units) and an annual transport volume of more than 18 million TEU.
Completion of the deal is subject to the approval of the State of Israel.
Yair Seroussi, chairman of ZIM's board of directors, said: "Today's announcement 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.
"We are confident this is a compelling transaction for shareholders that further advances the tremendous value creation track record that we have established, returning to shareholders approximately $10 billion since our IPO. This significant value was achieved through consistent operational improvements, disciplined and smart fleet renewal decisions, strong management and effective board engagement, and the dedication of our world-class employee base."
At 1605 GMT, Hapag-LLoyd shares were down 7.1% at 111.80.
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