The CMA CGM Group announced that it signed an agreement with China Merchants Port (CMP) to sell several stakes in ten port terminals to Terminal Link, a joint venture set up in 2013 and owned 51% by CMA CGM and 49% by CMP.
Specifically, this transaction will enable Terminal Link to expand its geographic footprint and reinforce its growth potential by giving it equity stakes in ten additional terminals:
- Odessa Terminal (Ukraine)
- CMA CGM PSA Lion Terminal (CPLT) (Singapore)
- Mundra Terminal (India)
- Kingston Freeport Terminal (Jamaica)
- Rotterdam World Gateway (Netherlands)
- Gemalink (Cai Mep, Vietnam)
- Qingdao Qianwan United Advance Container Terminal (China)
- Vietnam International Container Terminal (Ho Chi Minh City, Vietnam)
- Laem Chabang International Terminal (Thailand)
- Umm Qasr Terminal (Iraq)
Accordingly, it is reported that the transaction is planned to be closed in Spring 2020, awaiting the approval of antitrust authorities and relevant regulatory bodies.
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The sale is part of the plan announced on November 25, 2019, according to which the Group aims to reduce its debt and increase its liquidity. After the deal, the group expects to raise more than USD 2 billion in additional cash by mid-2020, while extending its debt maturities and reducing its debt by more than USD 1.3 billion.
Concluding, CMA CGM was the first shipowner in the world in 2019 that successfully tested the use of a marine biofuel onboard the container ships CMA CGM White Shark and Alexander Von Humboldt.
