Global shipping company CMA CGM has reached an agreement to acquire an equity stake of nearly 25 per cent in CEVA Logistics.
CMA CGM said it has committed to subscribe for mandatory convertible securities of CEVA in an estimated amount between 380 and 450 million CHF.
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 on the Swiss Exchange, announced on 20 April 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.
CEVA posted revenues of over $7 billion in 2017 and is the number five player in contract logistics, providing end-to-end supply chain solutions, and managing more than nine million square metres of warehouses in more than 750 sites in the world.
CEVA is 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.
Following this equity investment, CMA CGM will nominate two members of CEVA’s Board of Directors. The 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.
CMA CGM chairman and chief executive officer, Rodolphe Saadé said: “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.“