CMA CGM has signed a new relationship agreement with CEVA Logistics to reinforce the industrial cooperation between the two companies.
“We are convinced of CEVA Logistics’ potential. This industrial cooperation will make it possible to accelerate its required transformation and to make it a more profitable and efficient leader in logistics for the benefit of its clients, its employees and its shareholders. It reconfirms CMA CGM as the reference shareholder as well as its long-term partner,” Rodolphe Saadé, Chief Executive Officer of CMA CGM said.
According to a joint press release, this agreement will make it possible for CEVA Logistics to accelerate its transformation by:
- Bringing CMA CGM’s operational expertise and its experience in corporate transformations to help CEVA achieve its recovery plan faster and more efficiently.
- Creating new commercial opportunities: as a leader in the sea transport sector with an international commercial network, CMA CGM will generate new opportunities for CEVA Logistics.
- Adding value to the commercial complementarities between CEVA Logistics’ and CMA CGM’s freight management activities: CMA CGM will transfer its freight management activities to CEVA Logistics, thus strengthening the company and creating economies of scale.
- Supporting CEVA Logistics’ reorganisation and development strategy: CMA CGM will support additional investments aiming – among other things- at implementing CEVA Logistics’ digital and IT transformation which will stimulate its commercial success and operational efficiency.
This industrial cooperation has received the full support of CEVA Logistics’ board of directors and management. It preserves CEVA Logistics’ assets and identity.
The agreement signed between CMA CGM and CEVA also entails:
- A removal of the drag along clause in the relationship agreement previously entered into
- A voluntary public tender offer from CMA CGM, for a value of 30 CHF per share in cash, for the CEVA Logistics shareholders who wish to sell their shares despite the value creation potential from the industrial cooperation with CMA CGM, which will be pre-announced by November 30, 2018 at the latest.
Read more:
- CEVA Logistics signs new five year deal with Western Power
- CEVA completes $1.4 billion refinancing
- CMA CGM receives approvals for its 25 per cent holding in CEVA