Israel’s Economy Minister Nir Barkat has reportedly reconsidered his opposition to Hapag-Lloyd and FIMI’s proposed $4.2 billion acquisition of ZIM, following changes to the transaction and discussions with FIMI. According to Calcalist, Barkat now believes the deal could be approved and has instructed the Economy Ministry’s professional staff to hold another meeting with representatives of Hapag-Lloyd and FIMI. The meeting is expected after the Sukkot holiday and will give the buyers another opportunity to address concerns surrounding the proposed transaction. calcalist The development represents a shift from Barkat’s previous position. In May, the Economy Ministry opposed the deal, joining objections raised by other government bodies over the future structure and financial strength of the Israeli shipping operation. Barkat reconsiders earlier opposition Calcalist reported that Barkat’s position changed after a meeting with FIMI CEO Ishay Davidi, which took place against the backdrop of revisions made to the proposed transaction. A central element of the deal is the creation of a separate Israeli shipping company under FIMI. According to the latest Calcalist report, the company would own 12 vessels and charter another four, while assuming obligations connected to Israel’s special rights in ZIM. Barkat has also examined concerns related to security and employment. Calcalist reported that around 200 ZIM employees are expected to leave as part of the acquisition, with FIMI telling the minister that those affected would receive enhanced severance terms. On security, Barkat reportedly concluded following discussions with relevant officials that the proposed structure could meet Israel’s requirements. However, questions remain over the size and long-term financial strength of the new Israeli company. Long-term financial position remains under discussion Another issue concerns Hapag-Lloyd’s commitment to provide financial supp