Hapag Lloyd in talks over acquisition of Israel's ZIM

(Sharecast News) - German shipping giant Hapag Lloyd has confirmed it is in talks over the potential acquisition of Israel's national flag carrier, ZIM. In a brief statement on Sunday, Hapag Lloyd said that so far, no binding agreements have been entered into. It also said the required approvals of the deal by the management board and the supervisory board, as well as by the competent corporate bodies of the contractual counterparties, have not yet been granted.

"Furthermore, the consent of the State of Israel based on its special rights set forth in the articles of association of ZIM is required," it added.

"In this context, negotiations with FIMI Opportunity Funds, an Israeli financial investor, for the assumption of the obligations under these special rights are well advanced."

Hapag said completion of the deal would require additional regulatory approvals and the consent of the shareholders' meeting of ZIM.

No financial details were given, but reports suggested an acquisition of price of around $3.5bn.

At 1320 GMT, Hapag Lloyd shares were down 5% at €114.40.