Wednesday, June 14, 2017

Maersk Sells Domestic Feeder Container Shipping Line to CMA CGM

Purchase Simplifies Cabotage for French Box Carrier
Shipping News Feature
FRANCE – DENMARK – BRAZIL – French shipping group, CMA CGM has entered into a binding agreement with Danish container giant Maersk Line, to acquire Mercosul Line, a domestic ocean freight shipper for the Brazilian market. The acquisition of Mercosul Line would allow CMA CGM to strengthen its service offering to and from South America, most notably in Brazil, a market with a strong potential for development, especially on cabotage, feeder and 'door-to-door' services.

Subject to regulatory approval in Brazil and the closing of Maersk’s acquisition of competitor Hamburg Süd, the integration of Mercosul within CMA CGM is expected to start in the fourth quarter of 2017, around the same time as the Hamburg Süd integration in Maersk. Søren Toft, Chief Operating Office, Maersk Line, said:

“Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition. Its dedicated talents are well regarded both internally and externally. CMA CGM is a good fit for Mercosul and we are confident that they will continue to develop the company going forward.”

The acquisition forms part of CMA CGM’s core strategy to develop intra-regional sea transportation links and complementary services such as logistics. Mercosul, with its fleet of four ships operating in Brazil and South America, employs 92 land based staff and 160 seafarers. Last year, the company reported revenues of $128 million. CMA CGM hopes that the transaction will ensure that the cabotage sector in Brazil remains competitive and that customers continue to benefit from a comprehensive choice of carriers, with Rodolphe Saadé, CEO of CMA CGM, saying:

“The acquisition of Mercosul represents a milestone in CMA CGM’s development strategy in South America. It is a well-managed company and we will leverage this platform to expand our footprint and service offerings to and from Latin America, seizing opportunities linked to the high growth prospects in this region. As a result, CMA CGM will be able to propose complete door-to-door services continue providing best-in-class services to its customers.”