Israel is poised to block German shipping giant Hapag-Lloyd’s proposed $4.2 billion acquisition of ZIM. Defense Minister Israel Katz rejected the deal after ministry officials concluded it fails to safeguard national security during emergencies.
The decision stems from significant ownership stakes in Hapag-Lloyd held by a Qatar sovereign wealth fund subsidiary (12.3%) and Saudi Arabia’s Public Investment Fund (10.2%).
ZIM currently manages 40% of Israel’s export and import market. Officials warn that foreign control could jeopardize the country’s vital maritime trade routes.