Company with Saudi and Qatari investors buys Israeli CIM for $3.5 billion

Hapag-Lloyd will buy CIM together with the Israeli investment fund PIMI, Calcalist reports. This allows us to solve the problem of the “golden share” owned by the state. A “golden share” does not provide rights to profits, but does allow the state to use a company’s resources in certain cases and does not allow a foreign entity to own alone a company determined to be strategic or vital to Israel.

As part of the deal, the German company, 22.5% controlled by sovereign wealth funds of Saudi Arabia and Qatar, will take over CIM’s international operations, while PIMI will control strategically important activities and will own the rights and obligations arising from the golden share.

The Israeli partner in the deal will be responsible for a fleet of 16 ships, wholly owned by the company, flying the Israeli flag and subject to mobilization in emergency situations. We are talking about ships carrying ammunition, military equipment, essential goods, etc., when foreign shipping companies stop calling at Israeli ports.

PIMI will also control CIM’s shipping lines directly to and from Israel, the company’s headquarters in Haifa, computer systems and the management of Israeli personnel, including Israeli naval officers, which is an essential condition of the “golden share”.

In addition, the fund will be given responsibility for complying with regulatory requirements of the Departments of Transportation and Defense, such as maintaining a minimum number of ships owned.

Hapag-Lloyd will acquire 99 leased vessels, the contracts for which will effectively be transferred to it, as well as global trade routes that do not pass through Israel

In addition, Hapag-Lloyd will oversee CIM’s international marketing and sales apparatus, including international customer agreements and the CIM brand abroad. CIM’s technology activities, which focus on developing digital solutions for the world of shipping, will also be acquired by the German company.

It should be noted that for the transaction to be implemented, it must be approved by the state.