EU Clears Acquisition of CEVA by CMA CGM
- Business & Finance
The European Commission has given the green light to French shipping major CMA CGM to acquire Swiss logistics company CEVA Logistics.
Following the approval, CMA CGM will acquire sole control of the Switzerland-based company.
The commission concluded that the proposed acquisition would raise no competition concerns, given its limited impact on the structure of freight forwarding, short sea and deep sea container shipping markets, according to a statement issued on February 7, 2019.
In April 2018, CMA CGM decided to expand its presence in the logistics sector by investing in CEVA on the occasion of CEVA’s initial public offering (IPO). CMA CGM’s investment represented 24.99 percent of CEVA’s capital.
The two companies then agreed to explore potential opportunities to work together towards the development of joint commercial offerings. The move was said to be in line with CMA CGM’s strategy to boost its product portfolio while integrating services beyond maritime transport.
In October, the two companies broadened their strategic partnership and signed a new relationship agreement. In addition, CMA CGM’s equity stake increased to 33 percent.
Finally, in November, the two companies announced a new step in their strategic partnership which included the pre-announcement of the public tender offer by CMA CGM, the acceleration of CEVA’s transformation, and leveraging CMA CGM’s ocean carrier platform to generate cost efficiencies.