Saturday , 14 December 2019
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CMA CGM to sell terminals and ships worth US$2bn to fund Ceva acquisition
CMA CGM is the world's fourth largest container shipping line

CMA CGM to sell terminals and ships worth US$2bn to fund Ceva acquisition

CMA CGM is aiming to raise US$2bn from the sale of terminals and vessels to support its acquisition of Ceva Logistics.

Nearly half the funds – US$955m – will be raised by selling a portfolio of ten terminals located in Asia, Europe, the Middle East and the Caribbean to Terminal Link, its own joint venture with China Merchants Port Holdings (CM Port).

The Chinese operator noted in a statement: “CM Port has been actively exploring and acting on acquisition opportunities overseas as a pertinent mean to effectively add new growth drivers to its existing and sustainably growing ports business.

“With the proposed acquisition, CM Port will be able to enhance or gain presence to a mix of regions covering Asia, Europe,  Middle East and the Caribbean, each of which with their respective strengths and growth potential.”

A further US$860m will come from the sale and leaseback of ships while US$93m will be raised by the sale of its stake in an Indian logistics hub.

CM Port further noted that the deal would provide another cornerstone of a “beneficial strategic partnership” with CMA CGM in operating and developing container terminals on a global basis and extending their relationships as business partners.