CMA CGM has completed its public tender offer to acquire CEVA Logistics, as it implements a transformation plan to extend its shipping footprint into the logistics sector.
The carrier now holds 97.89% of the outstanding shares of the logistics player and will consolidate the management teams in an aim to return CEVA to profit.
Rodolphe Saadé, chairman and CEO of CMA CGM Group, said that the purchase represented a milestone in the French company’s group, “confirming its position” as a leading maritime transport and logistics group.
He added: “We can now offer our customers a complete range of solutions that meet all their needs and set us apart from the competition.”
Merging CEVA’s operation into the Marseilles-based group will mean the company is present in 160 countries, employing 110,000 people and delivering an annual revenue of more than US$30bn.
A statement from CMA CGM noted that it will “now be able to meet the logistics needs of its customers around the world with a comprehensive range of solutions across the supply chain, including LCL, airfreight, purchase order management, contract logistics or customs clearance”.
In order to improve CEVA’s financial performance, a new strategic plan will be implemented, prepared jointly with CMA CGM.
A CEVA operational centre will be set up in Marseilles to bring together the management teams and support functions, i.e. 200 jobs (creation and transfer).
The consolidation will enable the deployment of a coordinated set of structural initiatives such as improving productivity by investing in information systems and digital technology and refocusing local teams on customer service.
Other goals include achieving a more balanced customer segmentation, streamlining the corporate organisation, in particular by reducing the number of regions and harmonising processes and implementing more targeted, more customer-focused communication.