ZIM Employees to Protest Multi-Billion-Dollar Acquisition by Hapag-Lloyd and FIMI
Hundreds of ZIM employees and Histadrut members are set to protest in Tel Aviv against the company's multi-billion-dollar acquisition by Hapag-Lloyd and FIMI, citing job security and national strategic risks.
Hundreds of employees of ZIM Integrated Shipping Services, the major global container shipping and maritime logistics company, are expected to protest this coming Tuesday outside the BSR Towers in Tel Aviv against the planned acquisition of the company by Hapag-Lloyd and the FIMI Opportunity Funds. According to reports, the German shipping giant Hapag-Lloyd won the tender to acquire ZIM, with FIMI, Israel's largest private equity fund managed by businessman Yishai Davidi, joining the transaction.
The Acquisition Terms and Market Valuation
Under the proposed deal, the two entities will acquire 100% of ZIM's shares, and the company will be delisted from the New York Stock Exchange, where it has been traded since early 2021 following its initial public offering at a valuation of $1.5 billion. While the exact valuation agreed upon with the German shipping company and FIMI has not been publicly disclosed, it exceeds $3.5 billion, compared to ZIM's current market capitalization of $2.7 billion.
Worker Protests and Strategic Concerns
The upcoming demonstration is being organized in cooperation with the ZIM workers' committee and the Histadrut labor federation, focusing on the struggle for employees' futures, job security, and the preservation of ZIM as a vital Israeli shipping line. The protest comes amid ongoing uncertainty surrounding the completion of the transaction and deep concerns over potential employment impacts. Histadrut officials emphasized that any future framework must include workers' representatives and guarantee their rights.
"We will not allow a situation where dedicated employees, who built the company over years and sustained it through the most complex periods, pay the price of this deal. The Histadrut will stand by the employees with all available tools and will not allow moves that harm their livelihood, job security, or the national interests of the State of Israel," stated Adv. Eyal Yadin, Head of the Transport Workers Union at the Histadrut.
Oren Caspi, Chairman of the ZIM workers' committee, added: "Israel is an island state, with 97% of goods arriving via the sea. During wartime, when the skies were closed, ZIM brought doctors, medicines, and ammunition to the country. This is a company that injects hundreds of millions of dollars in taxes into the state treasury, and now they want to sell it. Meanwhile, hundreds of employees are living in uncertainty. Government ministries have already raised weighty arguments against the deal, and we are here to make it clear: it must be taken off the agenda once and for all. You do not play with state security."
Government Opposition and National Security
As previously reported, government opposition emerged in July against the sale of the Israeli shipping company ZIM to the German firm Hapag-Lloyd due to fears of transferring control to non-Israeli hands, particularly noting Qatari and Saudi ownership stakes in the German company totaling 22.5%. During a government meeting, Prime Minister Benjamin Netanyahu stated that the deal "is not on the agenda at all," while Defense Minister Israel Katz noted that "the state holds a golden share, and if necessary, we will exercise the authority granted to us."
