FOLLOWING last month's approval by the European Commission (EC) for CMA CGM to acquire NOL-APL, the last step in the privatisation is for the French line to buy outstanding shares of NOL's total stock - 90 per cent of the whole.
At this stage, Marseilles-based CMA CGM has purchased 78 per cent of NOL in a US$2.4 billion cash deal with state-controlled Temasek Holdings of Singapore.
Pledging to move its Southeast Asian operations from Port Kelang and Tanjung Pelepas Malaysia to new mega berths at PSA's Pasir Panjang Terminal, CMA CGM has also agreed to relocate its Asian headquarters from Hong Kong to Singapore, reports the American Journal of Transportation.
The joint venture called CMA CGM-PSA Lion Terminal Pte Ltd (CPLT) will begin operating later this year as containers and equipment are transferred.
As part of its concession to the EC and Chinese regulatory bodies CMA CGM has withdrawn APL from the G-6 alliance and plans to form the new Ocean Alliance next year with Cosco, OOCL and Evergreen.
Together the Ocean Alliance would control 1,123 container ships with 5.5 million TEU of capacity and an additional 104 vessels and 1.3 million TEU on order, according to Alphaliner data.
OOCL will also be forced to withdraw from the G-6 all but destroying the alliance's infrastructure. Reformation of the remaining four carriers with the addition of "K" Line, Yang Ming, Hanjin and possibly UASC will form The Alliance, scheduled to begin operations next year.
The formation of new consortia in the coming year will bring challenges to both the Ocean Alliance and THE Alliance.
Trading partners, all of whom have their own joint ventures in ships, terminals and equipment, will have to work together to share resources and draw on each other's strengths to survive.
Source : HKSG.