French shipping company CMA CGM and Danish Maersk Line have signed an agreement, which foresees the CMA CGM’s acquisition of Mercosul Line. Mercosul Line consists basic player in Brazil’s domestic container shipping market.
With this agreement, CMA CGM aims to strengthen its service offering to South America, most notably in Brazil, a market with a strong potential for development, especially on cabotage and “door-to-door” services. This activity is part of the c strategy, which is to develop intra-regional sea transportation links and complementary services such as logistics.
The Mercosul transaction is subject to Brazilian regulatory approval and the closing of Maersk’s Hamburg Süd acquisition. At the earliest, the integration of Mercosul within CMA CGM will start at the same time as the Hamburg Süd integration, which is expected in Q4 2017. Until then, Mercosul Line will continue business as usual.
Rodolphe Saadé, Chief Executive Officer of CMA CGM, stated that this step enhances the company’s plans to seize opportunities linked to the high growth prospects in South America.
The parties have decided not to publicly disclose the price of the sale.
