French Line CMA CGM has confirmed its intention to acquire Neptune Orient Lines (NOL), Southeast Asia’s largest container shipping company, subject to approval from anti-trust authorities.
Following the acquisition, CMA CGM will have:
- capacity of 2 399 thousand TEUs and combined fleet of 563 vessels
- market share of approximately 11.5% (vs 8.8% for CMA CGM and 2.7% for NOL)
- combined turnover of US$22 billion.
CMA CGM is the world’s third largest container shipping firm, with 469 vessels. In 2014, the Group handled over 12 million TEUs and generated USD 16.74 billion in revenues.
NOL operates under the American President Lines (APL) brand. In 2014, the company’s revenues reached USD 7.04 billion. Currently, NOL operates 94 vessels, representing 618 thousand TEUs in fleet capacity.
Commenting on the transaction, Rodolphe Saadé, vice-chairman of CMA CGM, said: “This transaction will represent a significant milestone in the development of CMA CGM. At a time when the shipping industry is facing strong headwinds, scale is more critical than ever to capitalise on synergies and capture growth opportunities wherever they arise. We recognise the strategic importance of Singapore as a key hub for the maritime industry and we are committed to reinforcing its regional leadership.”
CMA CGM intends to retain and develop the APL brand. With a historic presence in the US, APL would add to CMA CGM’s operations in this region, said Saadé.
