[240418.EN.SEA] CMA CGM To Take a Quarter of CEVA to Boost Logistics Role

FRENCH shipping giant CMA CGM says it will acquire nearly 25 per cent of CEVA Logistics, having committed to subscribe for mandatory convertible securities of CEVA for between CHF380 million (US$390 million) and CHF450 million.

These securities will be convertible into CEVA common shares subject to obtaining all required regulatory approvals. The investment takes place in connection with CEVA's planned initial public offering on the SIX Swiss Exchange on April 20 and remains conditioned upon its successful completion.

With this transaction, CMA CGM aims to increase its role in the logistics sector, a business closely related to shipping, said the Marseilles-based company.

CEVA employees number 56,000 in 160 countries, generating revenues of US$7 billion in 2017. CEVA is the fifth biggest contract logistics providers and the 10th largest forwarder worldwide, managing nine million square metres of warehouses in more than 750 sites.

"Its long-standing blue-chip customer base includes leading players in the automobile, consumer & retail (including e-commerce), industrial & aerospace, technology and healthcare sectors," said the CMA CGM statement.

Following this equity investment, CMA CGM will nominate two members of CEVA's board. 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.

Said CMA CGM chairman and CEO Rodolphe Saade: "Together, the two companies will also explore possible cooperation, allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.".

Source : HKSG.