Israeli defence ministry opposes local shipping company's takeover by German firm

If completed, the US$4.2 billion deal would see Hapag-Lloyd acquire Zim's international routes and most of its ships, many of which are operating under long-term charters.

Local media outlet Calcalist reported that the MOD's fears stem from the possibility that Zim's routes to and from the United States and the Far East would be impacted by the takeover, thus affecting Israel's imports of weapons and related equipment.

The transaction would have also led to the creation of a new container liner company named New Zim. However, the MOD has expressed concern that New Zim's routes, which would be served by 16 vessels, would not extend beyond the Mediterranean, thus preventing it from continuing to serve Zim's existing routes linking Israel to the US and the Far East.