CMA CGM has agreed to sell a 90% stake in Global Gateway South (GGS) terminal in Los Angeles (USA) for a cash consideration of US$817m.
The shipping line will remain a minority shareholder holding 10% of the GGS terminal, which it acquired last year as part of Neptune Orient Lines (NOL).
CMA CGM and its subsidiaries entered into a long-term industrial partnership and utilisation agreement with EQT Infrastructure III and P5 Infrastructure, allowing the Group to remain a major user of the terminal with preferential conditions.
Farid T Salem, executive officer of CMA CGM, stated that the terminal would “remain an important part” of the company’s logistics network.
The sale enables the French carrier to complete a financial debt reduction plan, which it began in December 2015 when it acquired Singapore-based carrier NOL.
The target was to deleverage its balance sheet within 18-24 months through synergies and asset sales, worth at least US$1bn.
Closing of the transaction is subject to anti-trust and regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS), and is expected to occur by end of 2017.
Depending on its operational and financial performance GGS could be subject to make an additional payments to CMA CGM.