JERUSALEM (VINnews) — Israel’s historic shipping company, ZIM Integrated Shipping Services, will be sold in a deal valued at more than $3.5 billion and delisted from the New York Stock Exchange, marking a major change for a firm founded before the creation of the state.

According to a report by Israel Hayom, The deal, finalized overnight between Saturday and Sunday, divides ZIM’s operations. Germany-based Hapag-Lloyd, the world’s fifth-largest container shipping company, will acquire international routes that do not call at Israeli ports. Israel’s FIMI Opportunity Funds will take control of shipping lines serving Israel.

The transaction is under immediate review by Israeli authorities. Transportation Minister Miri Regev ordered a review after officials said they were caught off guard by the deal. Ministry Director-General Moshe Ben-Zaken has been tasked with assessing whether the state can intervene using ZIM’s “golden share,” which grants veto power over strategic matters.

The review reflects concerns over ZIM’s strategic importance to Israel, including reported ties between Hapag-Lloyd investors and Qatar and Saudi Arabia, which have drawn political attention in Jerusalem. Officials from the Shipping and Ports Authority and the Transportation Ministry said they were surprised by the scope and structure of the sale.

Hapag-Lloyd reportedly anticipated potential regulatory pushback and structured the deal to make it more difficult for Israel to block the transaction. Concerns also extend beyond Israel, with the European Commission expected to scrutinize the acquisition for antitrust issues, given Hapag-Lloyd’s status as a major global shipping company.

ZIM was founded in 1945 by the Jewish Agency for Israel as ZIM Palestine Navigation Company, before the establishment of Israel. Prominent leaders such as David Ben-Gurion and David Remez helped push for its creation. Partial privatization occurred in 1970, with full privatization under then-Prime Minister Benjamin Netanyahu in the late 1990s.

The company went public on Wall Street in 2021 at a valuation of $1.5 billion and recently had a market capitalization of around $2.5 billion.

The sale, which will lead to ZIM being delisted from the NYSE, is part of a broader trend of separating global commercial operations from assets considered strategically vital to Israel.