Israel’s Ministry of Defense has spoken out against the merger agreement between ZIM Integrated Shipping Services (ZIM) and Hapag-Lloyd . The Ministry’s stance is reportedly based on the origins of the buyer’s capital, including that of Compañía Sud Americana de Vapores (CSAV) , part of the Chilean Quiñenco group, which owns 30% of the shares.
It is worth remembering that, in February of this year, Hapag-Lloyd reported that it had reached an agreement with the Israeli shipping company to acquire 100% of ZIM’s shares , in a transaction valued at more than four billion dollars.
According to the Israeli media outlet Calcalist , the director of security at the Ministry of Defense, Almog Cohen, after reviewing the details of the document, raised alarms due to the involvement of foreign state funds belonging to Qatar and Saudi Arabia in the ownership of Hapag-Lloyd.
Regarding Chilean participation in the German shipping company, the media outlet noted that the head of the Security Department would not agree that “its maritime commercial activities should be controlled by these governments, as well as the Government of Chile, which is also among the largest shareholders of Hapag-Lloyd and which in recent years has maintained a firm political stance against Israel.”
This situation would jeopardize Israel’s maritime security in the event of a new armed conflict in which the country might become involved. In this regard, the official highlighted the role played by ZIM during the Gaza war , as it helped mitigate the effects of the various maritime blockades that Israel endured.
To clarify, the Chilean state does not own shares in Hapag-Lloyd nor does it hold any stake in the shipping company. Therefore, the Israeli argument appears to be geopolitical, related to the potential pressure a Chilean government might exert on the company’s board of directors.
Just yesterday, the shipping company itself published a statement confirming that its sale process is still underway.
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