Hapag-Lloyd says Israeli objections to its US$4.2 billion acquisition of ZIM target a transaction structure it has already abandoned, as the German carrier and its partner FIMI prepare to walk Israel's regulators through a revised proposal in the coming weeks.

"The positions presented, among others, by the Ministry of Finance and the Government Companies Authority (GCA) of the State of Israel relate to our original proposal and do not take into account the significant improvements that have since been made to the proposed structure," said Rolf Habben Jansen, CEO of Hapag-Lloyd.

The rebuttal follows the GCA's decision to end its review of the original transaction structure. Under Israeli procedure, any materially revised structure requires a new application and a fresh review process — meaning the clock effectively resets on one of the deal's key regulatory hurdles.

Hapag-Lloyd and FIMI built the improved proposal specifically around concerns raised by Israeli authorities, according to Habben Jansen. "We are confident that the strengthened proposal addresses the concerns raised and will pave the way for approval of the transaction. We remain focused on closing the transaction as soon as possible," he said.

Shareholder friction adds a second front

The carrier's defence comes as the transaction faces a second challenge. A group holding more than 10% of ZIM's shares has demanded that any materially revised transaction with Hapag-Lloyd and FIMI be put to a shareholder vote.

The investors argue that board approval alone cannot cover a substantially different transaction structure. Their position carries weight but stops short of establishing a legal requirement for another vote. If the demand gains traction, however, it could add weeks or months to a deal timeline Hapag-Lloyd is keen to compress.

Hapag-Lloyd, for its part, holds that the revised proposal squarely answers the Israeli government's concerns. The package includes an additional shipping route connecting Israel with Asia, investment in Israeli maritime personnel, measures designed to retain shipping expertise inside the country, and a new modern fleet for ZIM Israel.

"The substantially improved proposal gives Israel materially more maritime independence and addresses all its national security needs," said Habben Jansen.

Deal mechanics and what stands in the way

Hapag-Lloyd and ZIM signed a binding merger agreement in February. ZIM's shareholders have already approved the transaction once. What remains are regulatory clearances — most critically the approval tied to the Israeli state's special rights in ZIM, the lever through which the Ministry of Finance and the GCA exert influence over the carrier's ownership.

For shippers and forwarders with exposure to Israel-Asia and Israel-Mediterranean lanes, the stakes are concrete. The revised commitments promise an added Asia connection and a fleet renewal for the Israeli-flagged operation, elements that could reshape capacity and service quality on those routes if the deal closes as structured.

The immediate path is procedural. Hapag-Lloyd and FIMI will submit and explain the revised structure to the relevant Israeli authorities in the coming weeks, triggering a new review. Habben Jansen has signalled confidence that approval will follow; the GCA's appetite for the enhanced national-security package, and the possibility of a fresh shareholder vote, will determine whether the $4.2 billion transaction closes on the timeline the German carrier is pushing for.