The board of directors of Israel's ZIM Integrated Shipping Services has reconfirmed that the merger agreement with German shipping company Hapag-Lloyd is binding on both parties following shareholder approval on April 30.
In a statement, the company said it continues to support the transaction while engaging with regulatory authorities and the State of Israel to meet closing conditions.
Under the terms originally announced on February 16, Hapag-Lloyd would acquire ZIM for $35 per share in a deal valued at approximately $4.2 billion.
A new Israeli entity, referred to as "New ZIM", will be formed by FIMI Opportunity Funds to acquire a portion of the existing business and maintain specific shipping routes to Israel.
FIMI, which is a private equity fund in Tel Aviv, will assume the special state share obligations previously held by the State of Israel through this new subsidiary.
The combined entity is expected by the companies to operate a fleet of over 400 vessels with a total capacity exceeding three million TEU.
