CMA CGM finalises deal with China Merchants on terminal stakes

Shipping containers sit stacked on board the upper deck of container ship Antoine de Saint Exupery, operated by CMA CGM SA, at the port of Le Harve, France, on Thursday, Sept. 6, 2018. France is benefiting from solid economic expansion in the euro zone after years of European Central Bank stimulus, and a trade dispute with the U.S. that could have led to higher tariffs seems to have subsided for now. Photographer: Christophe Morin/Bloomberg

The CMA CGM Group, a world leader in shipping and logistics, announced today that it has signed an agreement with China Merchants Port (CMP) to sell a portfolio of stakes in ten port terminals to Terminal Link, their joint-venture set up in 2013 and owned 51% by CMA CGM and 49% by CMP.

The agreement confirms the terms of the transaction announced on 25 November 2019, particularly the consideration of USD 968 million, payable in cash at closing.

The transaction will enable Terminal Link to broaden its geographic footprint and reinforce its growth potential by giving it equity stakes in ten additional terminals:

Odessa Terminal (Ukraine)
CMA CGM PSA Lion Terminal (CPLT) (Singapore)
Mundra Terminal (India)
Kingston Freeport Terminal (Jamaica)
Rotterdam World Gateway (Netherlands)
Gemalink (Cai Mep, Vietnam)
Qingdao Qianwan United Advance Container Terminal (China)
Vietnam International Container Terminal (Ho Chi Minh City, Vietnam)
Laem Chabang International Terminal (Thailand)
Umm Qasr Terminal (Iraq)

The transaction is expected to close in Spring 2020, pending approval by antitrust authorities and the relevant regulatory bodies.

The CMA CGM Group strengthens its balance sheet

The sale is part of the plan announced on 25 November 2019, whereby the Group intends to reduce its debt and increase its liquidity. Through the various planned transactions, the CMA CGM Group expects to raise more than USD 2 billion in additional cash by mid-2020, while extending its debt maturities and reducing its debt by more than USD 1.3 billion.

 

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