Economic Committee Chairman: 'Qatar Cannot Take Over ZIM'

The Knesset's Economic Committee, led by MK David Bitan, convened yesterday to discuss the reports of ZIM, the Israeli shipping company, being sold to foreign companies. The discussion revolved around the fear of hostile entities taking over the company. It was clarified during the meeting that the Companies Authority has requested updates from ZIM regarding the deal. However, a representative from the company's board stated that there is no deal yet and hence, nothing to report to the Companies Authority, as it does not conduct theoretical audits.

Asaf Hadar, the chairman of the Maritime Officers Association, warned that there have been moves in recent months regarding the sale of ZIM, and he highlighted the security aspect. He added that ZIM is the only platform for all maritime infrastructure in the country and conducts all training. "If it ceases to be an Israeli company and ceases to be a platform for training, the shipping industry will collapse," he said.

David Reuveni, the secretary of the officers' division in the association, added that the foreign companies interested in the purchase are supported by hostile entities from Qatar and Saudi Arabia. Bitan asked the Companies Authority to address this and added that it is clear that the company cannot be sold to entities hostile to Israel.

Galit Vidarman, a representative of the Companies Authority, said that Israel has what is called a 'golden share' with detailed conditions that were updated in 2014. She added that the authority has not received any application from the company, and therefore, it sent a letter to ZIM asking for updates. Gonen Gomelsky, a lawyer from the Companies Authority, added: "When there is an entity interested in buying control of a company, it needs to turn to the Companies Authority, which then refers the matter to all relevant state bodies to formulate a professional position, taking into account vital interests, what is called the 'golden share'. There is no condition that the controlling shareholder must be Israeli, but there is a condition that it must remain an Israeli company, incorporated in Israel with the majority of directors being Israeli citizens and having security clearance. If Qatar wants to buy, it needs the state's approval. If it gets such approval, it can buy, and if it does not get approval, it cannot."

A representative of ZIM's workers' committee, lawyer Meir Asraf, said that there is no need to wait for an application and it is possible to issue a statement regarding foreign countries. He added that the Israel Ports Company (IPC) announced that it was informed that there are contacts to waive the golden share, and the IPC announced that it is committed to continuity of operation in all scenarios, including a naval siege. The chairman of the committee, Oren Kaspi, added that during the war, the CEO made all the company's fleet available to bring what was needed.

Kaspi added and clarified that the workers want the company to remain in Israeli hands and not be sold to foreign companies - this is for the benefit of all involved parties.

Bitan noted that it is reasonable to assume that if there is a deal with a country or people hostile to Israel, it will not be approved. He added that if the Companies Authority sees that there are negotiations with entities from Qatar, it should inform them in advance that the negotiations are a waste. "It is clear that Qatar cannot take over ZIM." Vidarman responded to the remarks and said that it is currently unclear who the negotiations are with, and that ZIM has not yet responded to the Companies Authority's request.

A representative of ZIM's board of directors, lawyer Ariel Aminzur, said that none of the entities published about them are Qatari or Saudi companies. According to him, "In one of them, there is a small holding of the Qatari sovereign wealth fund and the Saudi fund. There are no Qatari and Saudi board representatives in the company. The shareholders who hold over 60% are Germans and from European countries. The board is examining all options, if an agreement is signed, it is clear that it needs to go to the Companies Authority, to the Ministers of Finance, Transportation, and Defense to get approval. But there is nothing to go as long as there is no deal on the table. Today, ZIM is in foreign ownership and we comply with all Israeli mechanisms. The Companies Authority issued a letter to remind that we need to apply - if there is something to apply, we will apply, currently there is nothing to apply."

Bitan concluded and said that it is clear that security aspects need to be looked at. "As I opposed the sale of Ashdod Port, which received all the weapons in the war, and as we need one port in our hands, so we need one shipping company in our hands. Currently, this is a premature appeal but I expect the Companies Authority to take this seriously when the time comes. We cannot deal with fears, that's what the Companies Authority and the Ministry of Defense are for. You cannot sell to a company that Saudi and Qatari companies hold shares in, it's elementary. If necessary, we will hold another discussion," he said. He also called on the Histadrut (the General Federation of Labor in Israel) to take care of the workers in any agreement.