CMA CGM has confirmed its acquisition of Neptune Orient Lines (NOL) for $ 0.93 per NOL share, valuing the deal at $2.4bn. This massive acquisition will create a combined turnover of $22bn for CMA CGM. It is estimated that CMA CGM will have a fleet size of about 560+ vessels with the complete acquisition of NOL.
Rodolphe Saade, vice chairman of CMA CGM, said: “By bringing together the know-how of both teams, the enlarged group will be even better positioned to provide premium services to its customers across all markets”.
“At a time when the shipping industry is facing strong headwinds, scale is more critical than ever to capitalise on synergies and capture growth opportunities wherever they arise,” he said.
Saade added: “We recognised the strategic importance of Singapore as a key hub for maritime industry and we are committed to reinforcing its regional leadership.”
In this regard, CMA CGM plans to establish its regional head office in Singapore and use the city-state as a key hub in Asia. Singapore-listed NOL operates under the APL brand, which operates 94 ships with a combined tonnage of 618,000 teu.
Ng Yat Chung, CEO of NOL, commented: ” The combined market presence delivered by the transaction would achieve the scale needed to enhance competitiveness for NOL’s operations and offer a clear and sustainable long term direction for the combined entity. The transaction would enable NOL to grow as part of a larger entity with the resources of the world’s third largest container shipping line.”
CMA CGM is currently the world’s third largest shipping line with 469 vessels with a combined capacity of 1,781,000 teu. A joint press release by the two shipping groups said the offer will be launched without delay after approval of the relevant authorities which is expected by mid-2016.
Source: Channel News Asia
