French shipping giant CMA CGM announced it has reached an agreement to acquire an equity stake of nearly 25% in logistic company Ceva Logistics AG.
CMA CGM said in a statement on April 20 that it has committed to subscribe for mandatory convertible securities in Ceva in an estimated amount of CHF380 million (US$391 million) to CHF450 million. These securities will be convertible into Ceva common shares subject to obtaining all required regulatory approvals.
This equity investment takes place in connection with Ceva’s planned initial public offering (IPO) on the SIX Swiss Exchange, announced on April 20, 2018, and remains conditioned upon its successful completion.
With this transaction, CMA CGM said it aims to grow its presence in the logistics sector, a business closely related to shipping.
A global leader in logistics and with more than 56,000 employees and temporary/agency workers in 160 countries, Ceva posted revenues of over $7 billion in 2017.
The company is the fifth player in contract logistics, providing end-to-end supply chain solutions, and managing more than 9 million square meters 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.
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 to develop 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 of regulatory authorities.
Commenting on the proposed transaction, Rodolphe Saadé, chairman and CEO of CMA CGM, stated: “With this proposed investment in Ceva, CMA CGM makes a significant move, in line with its development strategy.”
He added that the two companies will together also explore possible cooperations “allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.”
