Zim deal heading for explosion? Treasury opposes: "Fear of influence by hostile elements"

The Ministry of Finance submitted a position paper opposing the sale of Zim to the German shipping company Hapag-Lloyd for 4.2 billion shekels. The Treasury raises concerns about Qatari and Saudi influence, Zim's structural dependence on a foreign entity, and the state's high exposure to financial risks in the event of a crisis.

The Ministry of Finance submitted a position paper on Monday to Roi Kahlon, director general of the Government Companies Authority, opposing the sale of Zim to the German shipping company Hapag-Lloyd for approximately 4.2 billion shekels. The position paper states that "the risks in the deal in its current form outweigh its benefits." The Treasury raises concerns about Qatari and Saudi influence in crisis situations, as the two together hold 22.5% ownership of Hapag-Lloyd. The Treasury also warns of the complete structural dependence Zim would have on the German company, which could harm Zim Israel over time. Additionally, the Treasury notes a distortion in the deal's structure that shifts high risk to the state, which in a crisis would be required to inject funds and guarantees, while Fimi Fund would absorb limited losses. The Treasury also addresses Zim's business plan, which relies on overly optimistic assumptions and ignores increases in fuel prices. However, the Treasury determined that if a new deal is proposed that substantially reduces the risks, it could be examined.