It’s definitely proving to be a hot m&a (mergers & acquisitions) season in the box-shipping industry.
With whispered talks taking place between two of China’s largest shipping firms - China Ocean Shipping Company (Cosco) and the China Shipping Group – during the last couple of months over a possible merger.
And now the world’s largest and third largest carriers – Maersk Line and CMA CGM – both flirting with shipping company Neptune Orient Lines NOL about its possible acquisition. And the French line’s courtship is more advanced than the Dane’s, according to Bloomberg, having gone so far as CMA CGM having made a preliminary offer of US$1.9 billion.
And for that, CMA CGM would get the 90-vessel, modern fleet of NOL’s shipping arm, APL – a balance of both linehaul and feeder vessels of a less-than 9-year average age, complemented by services with alliance partners and slot charter agreements
According to data from industry consultant Alphaliner, if you tacked on the Neptune Orient APL container unit’s 2.7% market share to CMA CGM’s 8.9%, you’d end up with a very pleasant, double-digit 11.6% share.
But it’s not the first time there’s been rumours in the industry about acquiring NOL/APL. Also, first established in 1968 as Singapore’s own flag line and still 67%-owned by state investment company Temasek Holdings, there’s no saying whether it would willingly sell. So – wait & see.
