CEVA rejects CMA CGM buy-out offer valuing it at $2.3bn

Shipping company CMA CGM has launched a cash offer to buy out other shareholders of CEVA Logistics. CMA CGM already owns just over 50% of CEVA, made up of shares and derivatives. The company’s current offer of CHF 30 (AUD 42) per share values the Swiss forwarder at AUD 2.33 billion, a tie-up aimed at boosting growth through economies of scale and cooperation.
CEVA began developing a business plan to boost commercial cooperation and complementary services last year. At the time and following a rejected takeover bid in October by Danish freight company DSV, CMA CGM offered CHF 30 per share for the rest of the Swiss company,.
CEVA Logistics’ board of directors said on Monday that while CMA CGM’s offer was “reasonable from a financial perspective” and “provides a fair exit opportunity”, they board did not recommend shareholders accept the offer as they expect CEVA will eventually be worth more as the two companies work together.
The CEVA Board said the company’s true takeover value was at least CHF 40, due to an intensified business collaboration with CMA CGM potentially resulting in strong sales and revenue growth.
CEVA Logistics shares rose 0.5 per cent to CHF 30 following the announcement.

Shipping containers to sustain food production

The cooltainer installed by Agricool in Dubai. © Agricool.

Founded in 2015 in Paris, Agricool aims to create urban farms in recycled containers. With its innovative agricultural model, the young company wishes to produce fruit and vegetables without pesticides, picked and sold on the same day and prioritising short circuits. Several containers are currently being tested.
In Paris, Agricool grows strawberries by saving 90% of water and nutrients compared to classical agricultural methods and uses renewable energy only. These strawberries contain an average of 20% more sugar and 30% more vitamin C than retail store strawberries.
In 2018, shipping conglomerate the CMA CGM Group provided its first concrete support to Agricool by offering technical and logistical support for the delivery and installation of a ‘cooltainer’ in Dubai.
In December, Agricool completed a €25 million fundraising campaign to finance the industrialisation of its innovative project. On this occasion, CMA CGM acquired an equity stake in the company through its investment fund, CMA CGM Ventures.
In parallel, CMA CGM wants to support Agricool’s development by providing it with its industrial and logistics expertise. The group thus becomes the main supplier of containers and the primary logistics and supply partner of this young company.
Senior vice president of the container logistics department of the CMA CGM Group Joël Gentil said: “With this partnership, the CMA CGM Group confirms its commitment to support the development of start-ups that innovate in a relevant way. In line with our commitment to sustainable development, this solution allows us to recycle containers and give them a second life.”
 

View inside an Agricool cooltainer. © Agricool.

 

CMA CGM / ANL sticks with DPW

Pictured left to right: Philippe Herve, operations department manager (CMA CGM), Simon Moore, SVP Commercial (DP World Global), Noel Dent, general manager operations & logistics (ANL Container Line), Farid Salem, executive director (CMA CGM Group), Paul Scurrah, managing director & CEO (DP World Australia), Franck Magarian, vice president procurement terminals and ports (CMA CGM Group), Eric Mari, deputy vice president procurement terminals and ports (CMA CGM Group), Ben Moke, general manager commercial (DP World Australia), Xavier McDonald, legal manager contracts (CMA CGM), Maarten Voetelink, senior manager operations (CMA CGM).

DP World Australia has signed a long-term partnership extension over the servicing of CMA CGM Group vessels by DP World Australia at its terminals in Brisbane, Sydney, Melbourne and Fremantle.
This partnership extension brings the two big players in the Australian port logistics sector closer together. CMA CGM Group’s shipping services, which include ANL and APL, will leverage DP World Australia’s container terminal and intermodal footprint.
DP World Australia’s CEO and managing director Paul Scurrah said the partnership extension provides the two organisations with a strong platform for future growth in the Australian market.
“We are delighted to be selected by the CMA CGM Group as its major stevedoring provider in Australia. In an exceedingly competitive market, locally and globally, securing the partnership with CMA CGM Group reinforces our position within our industry as a leading and responsive trade enabler.”
ANL’s incoming managing director Xavier Eiglier said: “This contract extension is strategically important for the CMA CGM Group and ANL, its major operator in Australia, as it gives us certainty of access to quality stevedoring operations around Australia.
“Shipping is a very competitive environment, our customers count on us for timely shipment and arrival of their goods, so we in turn rely heavily on the performance of our chosen stevedores. We look forward to working closely with DP World Australia to continuously improve performance so as to maintain the quality of our customers’ supply chains.”
DP World Australia claims to be Australia’s biggest port and supply chain operator providing stevedoring and port supply chain services.
CMA CGM Group, comprising of CMA CGM, ANL, APL and ANL Sofrana, is said to be the largest shipping group in Australia providing international and coastal shipping, container logistics and container hire and sales services.

CMA CGM buys SOFRANA Unilines via ANL

CMA CGM has reached an agreement to purchase through its subsidiary, ANL, the majority of the shares in SOFRANA Unilines, a key player in the Pacific Islands regional maritime trade.
SOFRANA Unilines operates directly or in partnership a fleet of 10 vessels on eight trade-lanes, servicing 21 ports in Australia, New Zealand, Papua New Guinea and the Pacific islands.
With operations in the South Pacific region for almost 50 years, SOFRANA will provide enhanced port coverage to ANL and CMA CGM in this area.
ANL, owned by CMA CGM, already offers 16 trade lanes servicing major ports throughout Australia, New Zealand, Papua New Guinea, North Asia, South East Asia, Indian Subcontinent and North America.
The newly combined group, SOFRANA ANL, will join CMA CGM’s regional subsidiaries, OPDR and MacAndrews in Europe, and CNC in Asia. In addition, CMA CGM announced in June its project to acquire Mercosul Line to build up its operations in Brazil.
The acquisition of SOFRANA Unilines is expected to be completed by the end of October.

CMA CGM launches REX 2 service from Far East to Red Sea

CMA CGM has announced the launch of a new direct service of the Asia to Red Sea route that will replace a service that was stopped at the end of June.

The new REX 2 service will replace the REX 1 service that was operated in a Vessel Sharing Agreement (VSA) with APL.

This new service will enable CMA CGM to remain active on this major trade for the company, with a dedicated loop from the Far East to Red Sea markets.

The REX 2 service has been active from 22nd July, 2012, and is operated under a VSA between CMA CGM, HANJIN, CSCL and YANG MING. The "Ville d’Aquarius" vessel of 3900 TEU has been deployed for this purpose.

Commenting on the decision to launch this new service, CMA CGM Asia MED & NAF Vice President Stéphane Courquin explained that "it was essential for CMA CGM to offer again Egypt and Jordan calls with a direct and improved service from Asia. This new REX 2 service is the first step of CMA CGM redeployment in the zone and confirms the Group’s will to increase its presence in these countries for both import and export."

CMA CGM reshuffles India, Middle East, East Africa service

CMA CGM, the world’s third container shipping company, will reshuffle its services on the India/Middle East – East Africa trades in partnership with Emirates Shipping Line (ESL).

From May 11, the new CMA CGM India/Middle East – East Africa service network will be covered as follows:

  • New SWAX2: a service jointly operated by CMA CGM and EMIRATES Line with 5 vessels of 2,200Teus
    Rotation: JEBEL ALI > KHOR FAKKAN (NAVA SHEVA) > MOMBASA > ZANZIBAR.
  • New SWAX3: a service jointly operated by CMA CGM and EMIRATES Line with 3 vessels of 1,700Teus
    Rotation: JEBEL ALI > KHOR FAKKAN (NAVA SHEVA) > DAR ES SALAAM.

These two new services will replace the current SWAX service operated by CMA CGM.

CMA CGM slashes services due to fuel costs

To mitigate the impact of high fuel costs, global shipping line CMA CGM is to withdraw from New Zealand on its NEMO service at the beginning of August.

The world’s third-biggest container shipping line said the pullout was inevitable to cut operational costs and enhance schedule integrity.

As NEMO’s New Zealand cargoes will be carried to Melbourne via trans-Tasman lines, ports at Tauranga and Lyttelton are expected to lose ship calls.

Lyttelton Port chief executive Peter Davie said the port would conduct an assessment of the impact of the NEMO pullout.

“This was a business decision taken by CMA CGM to streamline its own operations – CMA CGM has reiterated that our service levels were excellent and we were performing extremely well under the contract,” Mr Davie told the AAP.

The plan to exit New Zealand means NEMO’s customers in Sydney and Brisbane will receive northbound transits two weeks faster. The line is also adding a northbound Fremantle call for the first time.

The decision came after the CMA’s announcement in February that it would exit the NEMO service from the port of Auckland and consolidate at Tauranga.

Photo Courtesy of Fremantle Ports

www.fremantleports.com.au

©2019 All Rights Reserved. MHD Magazine is a registered trademark of Prime Creative Media.