CMA CGM has agreed to acquire an equity stake of nearly 25% in CEVA Logistics as it seeks to strengthen its presence in the logistics sector.
The French carrier has committed to subscribe for mandatory convertible securities of CEVA in an estimated amount between CHF380-450m (US$390-461m).
These securities will be convertible into CEVA common shares subject to obtaining all required regulatory approvals.

Rodolphe Saadé, chairman and CEO of CMA CGM stated: “CEVA is a major player in the logistics business, which is closely related to the shipping industry.
“Together, the two companies will also explore possible cooperations allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.”
The logistics company had revenues of more than US$7bn in 2017, making it the fifth largest player in the contract logistics sector.
It is also ranked tenth in the world in freight forwarding, with a strong footprint in Asia.

Its blue-chip customer base includes firms in the automobile, consumer & retail (including e-commerce), industrial & aerospace, technology and healthcare sectors.
Following this equity investment, CMA CGM will nominate two members of CEVA’s board of directors.

The two companies have agreed to explore potential opportunities to work together towards the development of joint commercial offerings, according to terms that will be defined in the coming months.
The closing of the transaction remains subject to the completion of CEVA’s IPO as well as to the approval from regulatory authorities.

Source: Container Management