Sunday, June 23, 2024
CMA CGM acquires CEVA stake to boost logistics reach

CMA CGM acquires CEVA stake to boost logistics reach

Worldwide leading shipping company CMA CGM has reached an agreement to acquire an equity stake of nearly 25 per cent of CEVA Logistics, a global leading player in the logistics sector.

CMA CGM has committed to subscribe for mandatory convertible securities of CEVA in an estimated amount between CHF 380 and CHF 450 million. These securities will be convertible into CEVA common shares subject to obtaining all required regulatory approvals. With this transaction, CMA CGM aims to grow its presence in the logistics sector, a business closely related to shipping.

CEVA posted revenues of over seven billion dollars in 2017. CEVA is the number five player in contract logistics, providing end-to-end supply chain solutions, and managing more than nine million sq m of warehouses in more than 750 sites in the world.

It is also ranked 10th in the world in freight forwarding, with a strong footprint in Asia. Its long-standing blue-chip customer base includes leading players in the automobile, consumer & retail (including e-commerce), industrial & aerospace, technology and healthcare sectors.

The closing of the transaction remains subject to the completion of CEVA’s IPO as well as to the approval from regulatory authorities.

Commenting on the proposed transaction, Rodolphe Saadé, CMA CGM chairman and CEO, Rodolphe Saadé says: “With this proposed investment in CEVA, CMA CGM makes a significant move, in line with its development strategy.

“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.“

Picture of James Graham

James Graham

James Graham is an award-winning transport media journalist with a long background in the commercial freight sector, including commercial aviation and the aviation supply chain. He was the initial Air Cargo Week journalist and retuned later for a stint as editor. He continues his association as editor of the monthly supplements. He has reported for the newspaper from global locations as well as the UK.

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