By Anvee Bhutani
Shares of Zim Integrated Shipping Services shares fell Monday after an Israeli media report that senior Israeli government officials voiced opposition to the company's proposed merger with Hapag-Lloyd.
Shares were recently down about 5.7% at $24.11.
Zim said Monday it continues to act in accordance with the merger agreement and is working with the relevant state authorities as part of the regulatory review process.
The statement followed a report from Israeli news outlet Ynet that Israeli Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz expressed concerns over the proposed $4.2 billion transaction during a cabinet meeting. According to the report, officials cited national-security concerns and said the government could block the deal if necessary.
Hapag-Lloyd announced earlier this year that it agreed to acquire Zim in a cash-and-stock deal, while leaving a separate Israeli unit in place to address government ownership restrictions.
Write to Anvee Bhutani at anvee.bhutani@wsj.com