The CMA CGM Group is currently in exclusive negotiations with Bolloré Logistics regarding the acquisition of its transport and logistics operations. The news was announced on the CMA CGM Group’s official website on April 18.
These negotiations align with the CMA CGM Group’s long-term strategy built on two pillars: shipping and logistics. The Group’s strategy is to provide end-to-end solutions to support its customers’ supply chain needs.
If a deal is reached, this acquisition would further strengthen the CMA CGM Group’s logistics activities. The negotiations do not guarantee a final acquisition.
△ Screenshot from official website
Potential acquisition is part of the strategy to develop logistics and shipping
01
According to a statement released on Tuesday, Bolloré, the holding company controlled by French businessman Vincent Bolloré, received an acquisition offer of approximately USD 5.5 billion from CMA CGM. Bloomberg had reported in February that Marseille-based CMA CGM was interested in acquiring the business.
According to the statement, CMA CGM aims to submit a final offer around May 8, following an audit and contract negotiations. CMA CGM stated in a separate announcement that the potential acquisition is part of its strategy to develop its logistics and shipping operations.
Rodolphe Saadé, who took over as CEO of the world’s third-largest container shipping company from his late father, saw CMA CGM’s net profit soar to a record USD 24.9 billion in 2022, surpassing the USD 17.9 billion recorded in 2021. For his part, Saadé has already spent billions of dollars on transport and logistics assets, although he has also actively ventured into the media sector.
In 2021, CMA CGM reached a deal to acquire Ingram Micro’s e-commerce contract logistics business for USD 3 billion including debt, and agreed to acquire a container terminal at the Port of Los Angeles for an enterprise value of USD 2.3 billion. More recently, CMA CGM agreed to acquire two other major U.S. shipping terminals owned by Global Container Terminals Inc., one in New York and the other in New Jersey.
While visiting China as part of French President Emmanuel Macron’s business delegation, Saadé praised Bolloré’s logistics division. “They do a very good job in logistics, and we have great respect for them.”
CMA CGM’s own logistics operations span over 160 countries, offering both air and ocean freight services.
Bolloré’s attention to shift to media assets
02
Vincent Bolloré has also been actively engaged in M&A prior to this latest move. He recently completed the sale of his group’s African port operations to MSC Mediterranean Shipping Co., the top container shipping line led by billionaire Gianluigi Aponte, for €5.7 billion. The business now operates under the new brand Africa Global Logistics (AGL). As part of the MSC Group, AGL aims to contribute to the sustainable transformation of Africa and emerging markets through its customized, global, and innovative logistics solutions.
It is reported that Bolloré’s share price rose by 5.5% in Paris trading.
If the deal with CMA CGM goes through, Bolloré will exit the logistics business he built over much of his career. With greater financial resources, he is expected to shift his focus to his media assets, the second leg of the Bolloré industrial empire.
According to analysts, Bolloré may increase his stake in the conglomerate Vivendi SE, where he is already the largest shareholder. The 71-year-old has already begun reshaping Vivendi through the 2021 IPO of Universal Music Group, in which he retained a 10% stake.
Operating in pay-TV, advertising, and news through Canal+, Vivendi is currently focused on acquiring media rival Lagardère SA, which owns Hachette, the world’s third-largest publishing house.
According to the Bloomberg Billionaires Index, the Saadé family has a fortune of USD 32.5 billion, while Vincent Bolloré’s wealth is estimated at USD 9.4 billion.
According to its website, Bolloré Logistics employs 15,000 people across 148 countries, managing hundreds of thousands of tons of air and ocean freight for companies in industries ranging from healthcare to food and beverage.
Note: This article is a compilation from online sources and does not represent the views of this platform. Please contact us regarding any copyright issues.Source: JCtrans
