Bolloré Logistics is in “exclusive negotiations” with major shipping line CMA CGM Group after it received an unsolicited offer of purchase, the company announced this week.
The announcement comes as shipping lines globally seek to expand their landside logistics interests to operate ports and increase ownership of the supply chain on the back of significant revenue growth during the post-pandemic surge in global trade.
“The Bolloré Group confirms that it has received a spontaneous offer from the CMA CGM Group for the acquisition of its transportation and logistics activities held through Bolloré Logistics, on the basis of a €5 billion cash-free/debt-free enterprise value,” Bolloré Logistics announced in a statement on Tuesday.
“Following this offer, the Bolloré Group and the CMA CGM Group entered into exclusive talks to enable a confirmatory due diligence process and engage in contractual negotiations of a put option, based on such offer, to be issued by CMA CGM, if it so decides, on or about May 8, 2023,” the company said.
CMA CGM Group said in a statement that the negotiations were in line with the line’s long-term strategy “based on the two pillars of shipping and logistics”.
“The group’s strategy is to offer end-to-end solutions in support of its customers’ supply chain needs. If a deal is reached, the acquisition would further strengthen the CMA CGM Group logistics activities. The negotiations in no way guarantee an acquisition in the end,” said CMA CGM.
Bolloré Logistics said the companies would report on the outcome of these negotiations in due course. “The transaction will remain, in any event, subject to regulatory approvals and no decision to sell will be taken until the end of the information and consultation procedures of the competent employee representative bodies.”
Bolloré SE Group’s board of directors met on Tuesday to discuss the impact and “determine its reasoned opinion regarding the merits of the offer” for Bolloré SE shareholders.
“It will be proposed to the board of directors to add to the €5.75 offer price per Bolloré SE share (2022 additional €0.04 dividend included) a contingent €0.25 earn-out per Bolloré SE share if the CMA CGM offer for the acquisition of Bolloré Logistics leads to the sale of the latter,” the company said.
Bolloré said the proposal had already been favourably reviewed by the ad hoc committee and would be taken into account by an independent expert in its report to the board regarding the fairness of the offer price.
The latest offer comes after MSC purchased Bolloré Africa in December 2022 and rebranded it to Africa Global Logistics last month.
