THE Israel Corporation has acquired full control of the Zim Shipping Company after buying the Israeli government's share in the company, according to Ha'aretz, an Israeli daily newspaper.

According to the report, Israel Corporation, chaired by Idan Ofer, bought the state's 48.9 per cent interest for NIS1.04 billion (US$227 million).

The deal earned the state NIS504 million.

Israel Corporation, an Ofer Bros company, intends to acquire the outstanding 2.2 per cent held by private investors at a later date.

The decision to take control of Zim by Israel Corporation was made amid continued efforts to bolster the carrier's competitiveness.

The announcement followed an agreement reached between Ofer Ships Holding and the Histadrut labour federation, over the fate of Zim workers after the company's privatisation.

That problem was resolved in late October 2003, when the government's privatisation committee ratified a treasury proposal to split Zim into two parts.