ZIM Integrated Shipping rose 3% after Hapag-Lloyd said it plans to submit a revised proposal and seek approval from Israeli regulators for its $4.2 billion acquisition of the Israeli carrier. ZIM disclosed in a 6-K filing on Wednesday that Israel's Government Authority told the company Hapag-Lloyd must file a new proposal in full detail so the regulator and the State of Israel can decide on the transaction, and that regulators are no longer reviewing the deal until a new proposal is made. The development follows a report that the Israeli prime minister's office recommends blocking the $4.2 billion sale, which sent ZIM shares down 2.7% on Monday, with the Treasury also opposed to the combination. That report came hours after another indicating Israel's Economy Minister Nir Barkat may be willing to support the sale, having been convinced the deal can be approved and would benefit Israel. Under the original agreement signed in February, Hapag-Lloyd agreed to acquire ZIM for $35 per share in cash, representing an equity value of approximately $4.2 billion.
ZIM Integrated Shipping Services LtdHapag-Lloyd plans a revised proposal for its $4.2B acquisition of ZIM, reviving the buyout after regulatory review stalled.
Hapag Lloyd AGHapag-Lloyd must file a new full-detail proposal and seek Israeli regulator approval for its $4.2B ZIM acquisition, with Israeli government opposition creating uncertainty.
