FRENCH shipping giant CMA CGM is looking to raise as much as US$1 billion by selling port assets of Singapore's Neptune Orient Lines (NOL), including some in the US, reports the Wall Street Journal.
CMA CGM's first move: Sell offshore terminal assets of Neptune Orient Lines FRENCH shipping giant CMA CGM is looking to raise as much as US$1 billion by selling port assets of Singapore's Neptune Orient Lines (NOL), including some in the US, reports the Wall Street Journal. The terminals to be put up for sale include Dutch Harbour in Alaska and Global Gateway South in Los Angeles. NOL also operates terminals in China, Taiwan, Japan, Vietnam and Thailand. CMA CGM, the world's third-largest shipping line after Maersk and MSC, recently concluded its acquisition of NOL, paying $2.4 billion. Including NOL's debt, the deal was valued at about $5 billion. As of June 30, CMA CGM's adjusted net debt stood at $8.2 billion. The purchase kicked off a rare round of consolidation in the highly fragmented shipping industry, which is struggling to emerge from one of its longest-ever slumps. "The sale process should begin by late September or early October when CMA CGM will reach out to potential bidders," one of the people said. BNP Paribas and HSBC have been appointed to handle the sale. CMA CGM said Monday it will delist NOL from the Singapore Exchange.