Shipping conglomerate Hapag-Lloyd has agreed to acquire Israeli shipping services company ZIM for a total of $4.2 billion, as per an official press release.
The update comes amid protests by ZIM workers and other groups against the deal, due to concerns of foreign ownership, but if the transaction is finalized, Hapag-Lloyd stands to gain a larger share of the global shipping market, with market ownership shifting from 7% to 9%.
Hapag-Lloyd plans to pay $35 per share for the deal, with payment to be made in cash. The shipping giant will be financing the deal with a mix of existing cash reserves and external financing. External financing will run up to $2.5 billion.
To maintain some level of Israeli ownership, private equity firm FIMI will be owning a ZIM as well through an arrangement in which its ‘Opportunity Funds’ arm will be acquiring a separate entity with 12 vessels from ZIM and three shipping routes. The deal remains subject to approval from the state of Israel.
Post acquisition, Hapag-Lloyd expects to solidify its position as the 5th largest shipping company in the world.
At the time of writing, Hapag-Lloyd’s share price was 110.4 euros ($130.86).
Shipping stocks are typically undervalued due to volatility associated with fuel costs and freight costs, coupled with a general decline for some firms, with investors unsure of future growth prospects.
According to companies market cap, Hapag-Lloyd has a P/E ratio of 11.5 as of February 2026, which is lower compared to other industries such as tech and healthcare.
ZIM’s P/E ratio is even lower, ranging from 2.62 to 2.67, which suggests a heavily discounted share price for its level of earnings.