Israeli Economy Minister Nir Barkat has dropped his opposition to Hapag-Lloyd and FIMI's proposed $4.2 billion acquisition of ZIM and believes the deal could now be approved, according to Calcalist.

The shift opens a realistic path to clearance for a transaction agreed in February, in which Hapag-Lloyd would acquire ZIM for approximately $4.2 billion while FIMI takes control of a separate Israeli shipping operation carved out of the carrier. Barkat has instructed the Economy Ministry's professional staff to hold a further meeting with representatives of Hapag-Lloyd and FIMI. That meeting is expected after the Sukkot holiday and will give the buyers another opportunity to address outstanding concerns.

The reversal is significant. In May, the Economy Ministry opposed the deal, adding its voice to objections from other government bodies over the future structure and financial strength of the Israeli shipping operation. For carriers and forwarders active on Israel-linked trade lanes, the minister's change of position marks the clearest signal yet that the consolidation — which would fold ZIM's global network into Hapag-Lloyd — is moving toward regulatory sign-off in its home jurisdiction, the last major political hurdle beyond standard antitrust reviews.

What changed the minister's mind

Calcalist reported that Barkat's position shifted after a meeting with FIMI CEO Ishay Davidi, held against the backdrop of revisions to the proposed transaction. Hapag-Lloyd and FIMI submitted changes designed to address concerns raised during the government review; earlier Calcalist reporting said the revised structure would strengthen state control, provide access to additional shipping connections and introduce further protections for the Israeli operation.

A central element of the deal is the creation of a separate Israeli shipping company under FIMI. Under the latest structure, that company would own 12 vessels and charter another four, while assuming obligations connected to Israel's special rights in ZIM — the golden-share style arrangements that have safeguarded the state's interests in the carrier since its privatisation.

Barkat has also worked through concerns on security and employment. Calcalist reported that around 200 ZIM employees are expected to leave as part of the acquisition, with FIMI telling the minister that those affected would receive enhanced severance terms. On security, Barkat concluded after discussions with relevant officials that the proposed structure could meet Israel's requirements.

Financial strength questions remain

Two issues are still unresolved, and both go to the durability of the carved-out Israeli operator rather than to Hapag-Lloyd's global ambitions.

The first concerns Hapag-Lloyd's commitment to provide financial support to the Israeli operation for 10 years. Barkat is seeking additional assurances about the company's financial stability beyond that horizon, reflecting concern that a small fleet operator could struggle once the guarantee lapses.

The second is scale. The minister has requested further information on the relatively small size of the proposed Israeli operation — an issue that contributed to the Economy Ministry's original opposition in May.

Approval still not assured

Barkat's change of position does not amount to approval from the Economy Ministry or the Israeli government. The ministry's professional staff must still reconsider the transaction after the planned meeting with Hapag-Lloyd and FIMI.

The government bodies involved in the review are then expected to submit their positions to the Government Companies Authority. If they fail to reach agreement, Calcalist reported, the issue could be referred to the cabinet for a final decision.

For shippers and forwarders with exposure to Israeli trades, the practical question is what the new FIMI-controlled operator — 12 owned vessels plus four chartered — can sustainably offer once separated from ZIM's global network, and how Hapag-Lloyd's absorption of ZIM assets reshapes capacity on affected lanes. The post-Sukkot meeting should clarify whether the buyers' assurances on long-term funding are enough to secure ministry sign-off, or whether the $4.2 billion deal heads to the cabinet for a political decision.