Containerships at berth at the Port of Los Angeles, California. File photo: REUTERS/Lucy Nicholson
PARIS, July 3 (Reuters) – French container shipping firm CMA CGM said on Monday it had agreed to sell a 90 percent stake in a Los Angeles terminal to infrastructure funds for $817 million in cash.
CMA CGM will retain a 10 percent interest in the Global Gateway South terminal after the deal with funds EQT Infrastructure and its partner P5 Infrastructure, the company said in a statement.
The terminal came under CMA CGM’s ownership through its 2015 takeover of Singapore’s Neptune Orient Lines (NOL), a $2.4 billion deal that marked the Marseille-based group’s biggest-ever acquisition.
CMA CGM said the sale would help it pay down debts following the NOL takeover and that it was part of its strategy of focusing on shipping. At the time of the NOL takeover, CMA CGM said it aimed to make divestments of $1 billion after reviewing assets.
The acquisition of NOL, which operated under the commercial name APL, handed CMA CGM market leadership in trans-Pacific routes, with a strong presence on the U.S. west coast.
The NOL acquisition was part of a wider consolidation in the container shipping industry in the midst of a deep downturn in the past few years due to overcapacity and faltering global economic growth.
CMA CGM has posted a profit since the end of last year, supported by a recovery in NOL’s operating results.
BNP Paribas and HSBC acted as financial advisors on the deal, CMA CGM said. (Reporting by Gus Trompiz; writing by Leigh Thomas, editing by David Evans)
MANILA, April 27 (Reuters) – The Philippines on Saturday denied a Chinese claim that the two countries had reached an agreement over an escalating maritime dispute in the South China Sea, calling...
CAIRO, March 2 (Reuters) – The Houthi Transport Ministry in Yemen said on Saturday there had been a “glitch” in undersea communication cables in the Red Sea as a result of actions...
by Captain John Konrad (gCaptain) In the current American labor landscape, the stark contrast between the assertive strides of transportation unions and the maritime sector’s unique labor challenges is striking....
December 11, 2023
Total Views: 20483
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.