CMA CGM ocean carrier recently announced its plans to carry out a major asset sale program in order to gain control of CEVA Logistics. As the company stated, part of the plan is to sell stakes in 10 port assets to its joint venture partner, China Merchants Port Holdings.
Through the ports’ selling, CMA CGM will raise about $2 billion, from which plans to fund CEVA, returning back in the game. While at the same time it will use $900 million from the funds to reduce its $11 billion-debt. However, its join venture with China Merchants Port Holdings, will aid the French company to finance the CEVA deal.
During 2018-2019, CMA CGM has paid about $1.6 billion in total for CEVA’s takeover. As since the closure of the acquisition, $125 million have been lost in the last quarter. According to the CMA CGM’s expectations, CEVA is estimated to return to profitability until 2013, the soonest.
For the records, the amount of $725 million of the CEVA deal was eventually financed through a short-term loan, which is going to completed soon. At the moment, CMA CGM is trying to finish the repayment as soon as possible, while it has already paid down a large part from its debts, specifically $650 million, coming from the sale-leaseback deals of eight vessels.
Back in April 2019, CMA CGM gave about $1.7 billion to buy CEVA, in order to spread in land logistics. Concluding, the French shipping company is considered to be the 4th largest container shipping company in global which manages operations in more than 160 countries through 755 agencies, 750 warehouses and a team of 110,000 staff.
