The Israeli government and trade unions have reportedly accepted proposals from Israel Corporation to split Zim Integrated Shipping into two units, one foreign, the other regional, according to London's Containerisation International.
The Israeli Government's approval is necessary as Zim Line is considered a strategic asset by the state and it possesses a "golden share", which was retained when it sold its remaining 48.6% to Israel Corporation in 2004.
The separation of Zim International is deemed desirable as past exploratory talks with outside interests to raise fresh capital were hindered by foreign banks which were uncomfortable with the government's golden share conditions, said CI.
It is not yet clear how outside interests could be invited to participate in Zim International once split from the company's local interests. But who would retain control of the company afterwards given the Israeli government involvement?
