Change of trend in approval of Zim deal? Yishai Davidi convinced Nir Barkat to support the sale

Economy Minister Nir Barkat changed his position regarding the approval of the acquisition of Zim by Hapag-Lloyd and Fimi, following a meeting with Yishai Davidi. Barkat instructed the professional staff to hold a follow-up meeting with the buyers' representatives, contrary to the previous official position that opposed the deal due to security, economic, and employment concerns.

Economy Minister Nir Barkat changed his position regarding the approval of the acquisition of the shipping company Zim by the German Hapag-Lloyd and the Fimi fund, following a meeting he held with Fimi fund manager Yishai Davidi. Barkat, who had previously accepted the professional staff's position opposing the deal, became convinced that it could be approved and that its implementation would benefit the state. He instructed the professional staff to hold a follow-up meeting with the buyers' representatives after the Sukkot holiday. The deal, signed last February, involves the acquisition of Zim for $4.2 billion, splitting the company into two entities: Zim Israel, which will hold 12 owned ships and four chartered ones, and the transfer of most operations to Hapag-Lloyd. The professional staff at the Economy Ministry previously opposed the deal, arguing that the outline empties the state's golden share of content and poses a risk to national interests, among other things due to partial ownership of Hapag-Lloyd by Qatar and Saudi Arabia. Davidi argued that the current situation, where Zim has no controlling core, allows these countries to purchase up to 24% of its shares on the stock exchange without reporting. Barkat received partial answers regarding the dismissal of about 200 employees, who Davidi claims will receive good terms, and regarding security aspects, after consulting with relevant parties. However, he is still not convinced about the small size of the new company and requested additional data, as well as economic guarantees beyond ten years. Eight bodies are expected to submit their positions by the end of the month to the Companies Authority, and in case of disagreements, the issue is expected to be brought to a cabinet meeting, possibly even after the elections.