CMA CGM partner to acquire logistics arm
27 Nov 2018 - by
CEVA Logistics yesterday announced its new strategic plan which includes the launch of a partnership with CMA CGM and the acquisition of CMA CGM's freight management activities (CMA CGM Log) for $105 million.
“The CMA CGM & CEVA Logistics strengthened partnership will be based on an arm’s length business relationship between the two companies, allowing them to effectively and efficiently deliver end-to-end supply chain solutions to their clients on competitive terms,” said Rodolphe Saadé, chairman and CEO of CMA CGM.
He highlighted in a press statement that CEVA's strategic plan was aimed at creating a stronger footprint in ocean freight management while remaining an independent and standalone listed company.
“Cross-selling with CMA CGM will see CEVA focus on the value-add segments like cold chain logistics and LCL, develop fast-growing sectors (e-commerce, retail) organically and penetrate new geographic areas with strong growth potential (Asia, Middle East, Africa),” explained Saadé,
The integration of CMA CGM Log is expected to give CEVA access to an additional 170 000 TEUs.
Closing of the CMA CGM Log acquisition is expected in the second quarter of 2019 following completion of a Public Tender Offer by CMA CGM for CEVA.
CMA CGM has been a CEVA Logistics shareholder since its listing on the SIX stock exchange in May 2018. At present, CMA CGM owns a non-controlling 33% stake of the registered shares of CEVA Logistics.