On April 18, the CMA CGM Group announced on its official website that it had entered into exclusive negotiations to acquire the transportation and logistics business of Bolloré Logistics. The negotiation is in line with CMA CGM’s long-term strategy based on the two pillars of shipping and logistics. The strategy is to provide end-to-end solutions to support its customers’ supply chain needs.

If the deal is made, the acquisition will further strengthen CMA CGM’s logistics business. Bolloré Group confirmed in a statement that it had received an unsolicited offer for its freight and logistics business worth 5 billion euros (about 5.5 billion U.S. dollars), including debt. CMA CGM said that the negotiation does not guarantee the final success of the acquisition. According to the statement, CMA CGM aims to present a final offer around May 8 following audits and contract negotiations. Back in February, there were rumors that CMA CGM was interested in Bolloré Logistics. According to Bloomberg, CMA CGM CEO Saadé has long viewed Bolloré’s logistics business as a clear acquisition target.

MSC completed its acquisition of Bolloré Africa Logistics for $5.1 billion in December last year. Some people speculate that CMA CGM is also paying attention to a similar situation with DB Schenker, acquiring Geodis, a subsidiary of the French railway SNCF. Bolloré Logistics is obviously the acquisition target, but if CMA CGM cannot reach an agreement, Geodis may be plan B. CMA CGM already owns Ceva Logistics and bought Gefco from Russian Railways following the Russia-Ukraine conflict

CMA CGM’s net profit in 2022 will rise to a record US$24.9 billion, surpassing US$17.9 billion in 2021. For CEO Saad, he has invested billions of dollars in transportation and logistics assets. In 2021, CMA CGM reached an agreement to acquire Ingram Micro International’s e-commerce contract logistics business for US$3 billion including debt, and agreed to acquire a container terminal in the Port of Los Angeles with an enterprise value of US$2.3 billion. Most recently, CMA CGM agreed to acquire two other major U.S. shipping terminals, one in New York and the other in New Jersey, owned by Global Container Terminals Inc.

Bolloré Logistics is one of the world’s 10 leading groups in the field of transport and logistics, with 15,000 employees in 148 countries. It manages hundreds of thousands of tons of air and ocean freight for companies in industries such as healthcare and food and beverage. Its global services are built around an integrated strategy across five service areas, including Intermodal, Customs and Legal Compliance, Logistics, Global Supply Chain and Industrial Projects. Clients range from multinational corporations to small, independent importers and exporters.

The companies said the negotiate were under a confirmatory due diligence process. Bolloré has offered CMA CGM an option with a tentative target date of around May 8. Bolloré noted that any deal would require regulatory approval.

Oujian Group is a professional logistics and customs brokerage company, we will keep track of the latest market information. Please visit our Facebook and LinkedIn page.