The ZIM Integrated share price has jumped over the last few months, as odds of acquisition increased. The stock price ended last week at $22.20. This is up over 115% compared to its low point in 2025. The market cap of the company has risen to $2.6 billion.
Source: TradingView
Hapag-Lloyd could acquire ZIM Integrated Shipping
ZIM’s stock is likely to continue its rally on the open market of Tuesday, after Bloomberg reported Hapag-Lloyd in negotiations with the company. The move was intended to increase the ZIM market share within a highly competitive sector.
Bloomberg reported that both parties could sign this deal by the end of the week. This will be a benefit to its shareholders, as the buyer has to pay an additional premium. This sale is likely to result in a company valuation exceeding $3.7 billion.
ZIM’s stock may still experience volatility, as odds remain at 50/50. One of the reasons is that the Israeli unions representing the workers at the company have been against the deal. They have even gone on strike.
The Israeli government could be against the deal due to Hapag-Lloyd’s ownership. Hapag, a German-owned company, has close ties with Qatar and Saudi Arabia. Hapag is owned by the Qatar Investment Authority (QIA) and Saudi Arabia’s PIC.
Israel’s relations with Qatar, Saudi Arabia and other Arab countries are strained
Israel has long had a problem with Qatar. It believes that Qatar funds Hamas which controls Gaza. Last year, tensions rose between Israel and Qatar after Israel targeted Hamas leaders within the country.
Israel also has a tense relationship Saudi Arabia which does not yet recognize Israel. Saudi Arabian talks on joining the Abraham Accords stalled when Hamas launched an attack against Israel.
ZIM is considering separating its operations so that Israel cannot block it. For instance, the routes to and from Israel would be sold by FIMI while Hapag will take over international operations.
There are also concerns about the European Union blocking the deal, as the consolidation of the shipping industry will continue.
Recent results show that revenue and profit for the company dropped in the third-quarter. The company’s net income dropped by 89%, from $123 to 1,78 billion dollars. Its revenues fell by 36%. The company’s forecast was for adjusted EBITDA to be in the range of $2 billion to $2.2 billion.
ZIM Integrated is known for its high dividend yield. The company has a yield on dividends of almost 20%, and since 2021 has distributed over $5 billion.
As new information becomes available, this post ZIM Integrated Buyout by Hapag Lloyd faces major obstacles may change.
