Germany’s Hapag-Lloyd has confirmed it is in advanced negotiations to acquire all shares in Israeli rival Zim Integrated Shipping Services in a deal reported to be worth up to $3.7bn.

In a brief statement, the Hamburg-based carrier said no binding agreement has yet been signed and that approvals from its management and supervisory boards are still pending. The transaction would also require the consent of Zim’s corporate bodies, regulatory clearance and approval from Zim shareholders.

Crucially, the consent of the State of Israel is required under special rights set out in Zim’s articles of association. Negotiations are said to be well advanced with FIMI Opportunity Funds regarding the assumption of obligations linked to those special rights.

As part of the proposed deal, Hapag-Lloyd would acquire 100% of Zim’s shares, leading to the Israeli carrier’s delisting from the New York Stock Exchange, where it has traded since its 2021 IPO.

According to reports in Israeli financial media, FIMI would take control of assets considered of strategic national interest, including Zim-owned vessels and Israeli-flagged ships, thereby assuming responsibilities tied to the government’s so-called golden share. Hapag-Lloyd would focus on the chartered fleet, which accounts for roughly 611,000 teu, or about 87% of Zim’s operated capacity, based on Alphaliner data. These details have not been formally confirmed by Hapag-Lloyd.

If completed, the acquisition would lift Hapag-Lloyd’s global market share from around 7% to 8.8%, taking its operated capacity to about 3m teu. That would cement its position as the world’s fifth-largest container line, widening the gap to sixth-placed ONE, while still trailing fourth-ranked COSCO.

Container shipping analyst Lars Jensen noted that regulatory processes and shareholder approvals mean the deal is unlikely to close before 2027.

He added that the takeover could have knock-on effects in the Pacific trades. Zim currently operates six transpacific services in cooperation with MSC. Once under Hapag-Lloyd control, those volumes would likely shift onto the Gemini Cooperation network, potentially weakening MSC’s position while strengthening Gemini.

The structure of the deal would also push up Hapag-Lloyd’s charter exposure. Around 39% of its fleet is currently chartered. Absorbing Zim’s largely chartered fleet would lift that ratio to about 52% in the combined entity. Among the top 10 carriers, only ONE and Yang Ming have charter ratios above 50%.

In a market widely expected to soften, a higher share of chartered tonnage could offer flexibility, Jensen noted, adding that the ability to redeliver ships at the end of charters may help the combined carrier manage capacity and protect utilisation as the cycle turns.

The talks follow a turbulent strategic review process. In August 2025, Zim chief executive Eli Glickman and Israeli shipping magnate Rami Unger proposed taking the company private in a deal initially valued at about $2.4bn, or roughly $20 per share. Zim’s board rejected the approach, as well as a subsequent improved offer, arguing it significantly undervalued the company — with critics noting the bid was below Zim’s cash-per-share holdings at the time. The board then appointed Evercore in November 2025 to run a formal strategic review. While Hapag-Lloyd ultimately emerged as lead bidder, other major carriers were linked to the process. MSC publicly denied interest in December 2025, with analysts pointing to the complications of Israel’s golden share. Maersk was widely seen as being in the final running, while CMA CGM was also mentioned in consolidation speculation, before the German carrier moved into pole position.