CMA CGM looks to sell CMA Terminals business to reduce debt burden
FRENCH container shipping company CMA CGM is putting up its terminals division, CMA Terminals (CMAT), for sale
FRENCH container shipping company CMA CGM is putting up its terminals division, CMA Terminals (CMAT), for sale. The funds raised will be use to pay off debts, estimated to stand at US$19.9 billion as of April 2019.
Former APL CEO Lars Kastrup has been appointed to lead the sale of CMAT, which owns stakes in 32 terminals and handled 8.5 million TEU in 2018, according to analyst Alphaliner.
However, the analyst highlighted potential problems related to the sale of some of the assets owned by CMAT, reported Seatrade Maritime News, Colchester, England.
'CMA CGM may face difficulties in disposing of some terminals in less strategic locations, while assets in some key ports may not be for sale at all,' Alphaliner said its weekly newsletter.
'Strategic assets in CMAT's portfolio are the 49 per cent stake in the CMA CGM - PSA Lion Terminal at Singapore, a 30 per cent stake in the Rotterdam World Gateway terminal, and a 100 per cent stake in the Kingston Freeport Terminal.'
According to Bloomberg, China Merchants was in talks with CMA CGM to acquire terminal assets from the liner company. China Merchants already owns 49 per cent of CMA CGM's other port operating company Terminal Link.