CMA CGM’s sale of ten terminals to Terminal Link, its joint venture with China Merchants Port (CMP),is a step closer to completion after it was formally approved by the European Commission.
The measure means the terminals, based in China, Vietnam, Thailand, Singapore, Jamaica, Iraq and the Netherlands, will be run jointly between CMA CGM and CMP. The parties will now concentrate and coordinate their operations in those regions.
The European Commission, in approving the transaction, concluded that the concentration of the two companies operations would not create competition barriers as it would have “a very limited impact on the structure of the market”.
Port Technology International (PTI) reported on deal between CMA CGM, the fourth largest container shipping line in the world by market share, and CMP in December 2019. The France-based carrier expects to make $2 billion and substantially cut its debt as a result of the transaction.