SCL purchase consolidates Safmarine's liner interests

THE ACQUISITION by Safmarine of 100% control of SCL (Safmarine CMBT Lines) will consolidate the company's liner interests and provide it with greater flexibility in a highly competitive market, SCL executive responsible for the southern region, Brett Gray told FTW in Cape Town last week.
Safmarine last Monday announced that it had increased its holding in liner subsidiary SCL from an effective 75% to 100%, from July 1.
The purchase price was US$55 million (approximately R340 million).
Safmarine's CMBT link is a success story which dates back to 1991 when it purchased a 49% shareholding in the European shipping line.
It was a move which brought Safmarine closer to the mainstream of international shipping and gave it a foothold in the international shipping arena.
Graham Peirce was appointed CEO of the new company, and he turned around the company's fortunes from loss to profit.
In 1996 SCL (Safmarine and CMBT Lines) was formed as a company with head office in Antwerp, Belgium.
Howard Boyd, at the time liner director, was appointed CEO of SCL, with Graham Peirce his deputy.
Through various acquisitions over the years, the 49% shareholding increased to an effective 75%, with the recent deal involving the final 25%.
SCL will continue to be run from Antwerp and there is unlikely to be any change in the branding of the
products, predominantly Safmarine and CMBT, in the short term. SCL is the operating company selling various brands, and brand loyalty is regarded by the line as paramount.
Safmarine, through its holding company Safren, together with the CMB Group, will continue to work together in other areas such as aviation, port handling and land-based activities in Africa, while Marc Saverys and Ludwig Criel of CMB will remain on the SCL board.
"During the last eight years the liner shipping industry has seen continuing change through numerous alliances, mergers and other forms of consolidation.
"The formation of SCL in 1996 as a joint venture company embracing the Safrmarine liner interests and those of CMBT is an example of the changing scene," Boyd said.
With only one shareholder to manage SCL, Boyd believes it will be able to react quickly to present and future challenges and opportunities. "This is in line with Safmarine's long-stated strategy of effectively 'growing the business' through partnerships, alliances and joint ventures," he said.
Tony Farr will remain chairman of the SCL board.
The company has assured SCL staff that they will be not adversely affected by the consolidation of shares.
BY JOY ORLEK