NOL acquisition triggers billion dollar divestments at CMA CGM

When the acquisition of Neptune Orient Lines (NOL) is finalized, French CMA CGM plans to divest assets for at least USD 1 billion. The carrier will also open regional headquarters in Singapore.

Photo: APM Terminals

On Monday morning, CMA CGM announced its acquisition of Neptune Orient Lines (NOL) for USD 2.4 billion, a transaction that primarily awaits regulatory approval from competition authorities in the US, China and Europe, and which is not expected to be completed before mid-2016. When the deal is fully settled, the French container carrier expects to divest assets and gain synergies over the next two years totaling at least USD 1 billion, in order to reduce its gearing, informs the carrier in the statement.

This involves ships as well as terminals, which will be included in the strategic review scheduled for when the transaction is finalized, explained CMA CGM's CFO according to Tradewinds on Monday.

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