The company said in a press release that it had reached an agreement to acquire the equity stake through a commitment to subscribe for mandatory convertible securities of CEVA in connection with CEVA’s planned initial public offering on the SIX Swiss Exchange.
A global leader in logistics and with more than 56,000 employees and temporary/agency workers in 160 countries, CEVA is the fifth-ranked player in the global contract logistics segment, posting revenues of over $7bn in 2017. It is also ranked 10th globally in freight forwarding, with a strong footprint in Asia.
Commenting on the proposed transaction, CMA CGM chairman and ceo 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 cooperation allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.”
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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.
It is the latest move by CMA CGM to expand beyond the traditional concept of ocean container shipping and the company has been investing in forward looking areas such as digitalisation and LNG powered vessels.
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