Container shipping giant CMA CGM has reached an agreement to purchase a 25% stake in freight forwarder CEVA Logistics.
To obtain its share, the world’s third largest box carrier will subscribe to a convertible bond offering of between Sfr380m and Sfr450m.
These securities will be convertible into common shares subject to obtaining regulatory approval. The investment takes place in connection to the forwarder’s plans to list on the SIX Swiss Exchange.
“With this transaction, CMA CGM aims to grow its presence in the logistics sector, a business closely related to shipping,” the box carrier said.
“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.
Rodolphe Saadé, chairman and chief executive of CMA CGM, said: “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 co-operations allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.”
CEVA posted revenues of over $7bn in 2017 and is the number five player in contract logistics, providing end-to-end supply chain solutions, and managing more than 9m sq m of warehousing in more than 750 sites in the world.
It is also ranked tenth in the world in freight forwarding, with a strong footprint in Asia.
