CMA CGM Gets CEVA Regulatory Approval
CMA CGM will invest £380 million in supply chain specialist CEVA Logistics after being given approval by the SIX Swiss Exchange’s regulatory body.
The French container shipping giant recently bought 24.99% of CEVA Logistics, one of world’s leading third party logistics firms.
In April, CEVA Logistics announced its plans to raise $1.7 billion in an initial public offering (IPO).
The investment involves a lock-up agreement that prevents CMA CGM buying any more shares in CEVA for six months after the IPO is complete.
It comes after a number of container companies found ways to move their businesses further down the supply chain, the most notable of which is Maersk, which restructured to focus solely on container transport and logistics.
A joint statement on CEVA’s website said: “CEVA and CMA CGM will work together to expand their commercial cooperation and to develop complementary services, which address the increasing customer need for integrated end-to-end solutions.
“Both companies explore arms-length cooperation and believe that the partnership could create significant value to customers and would be mutually beneficial to both companies.”
CEVA’s CEO, Xavier Urbain, commented:
"It is good news that regulatory approvals have been obtained so quickly and we can now fully engage. We are excited about the partnership with CMA CGM.”