CMA CGM is seeking bids for Neptune Orient Lines’ (NOL) terminal business in the region of US$1 billion, reported The Strait Times.
Less than a year after purchasing NOL for $2.4 billion, CMA CGM is now looking for a buyer for its terminals in the US, Japan and Taiwan, as well as a number of joint ventures in Asia and Europe.
PTI recently reported CMA CGM is making good progress of the repayment of the loan it took out to finance the NOL deal, but given the current slump in global container rates due to overcapacity, more work its needed to cut its debt.
CMA CGM announced full-year revenue dropped 6.4 per cent to US$15.7 billion in March, despite a 6.3 per cent increase in container volumes.
Given CMA CGM already has terminals is several of the same locations as NOL, this sale will remove duplication and improve efficiencies for the business.
According to the story’s source, who wished to remain anonymous, CMA CGM could sell the assets off piecemeal or as one, depending on which gets the better deal.