CASH-STRAPPED French shipping giant CMA CGM is selling 49 per cent of its port operator Terminal Link for EUR400 (US$530.8 million) to Hong Kong terminal operator China Merchants Holdings (International) (CMHI), it was announced in a joint statement.
Terminal Link, ranked 12th port operator in the world, with an 8.1 million TEU volume in 2011, holds assets in 15 container terminals worldwide including operations at Dunkirk, Le Havre, Houston, Miami, Tanger Med and Busan, favoured CMA CGM ports of call.
China Merchants owns terminals on the Pearl River, at Chiwan, Shekou and Nanshan, and has stakes in terminals in Shanghai, Ningbo, Xiamen, Qingdao, Tianjin as well as a 27 per cent share in Hong Kong's Modern Terminals Limited. It also recently bought a 50 per cent stake in a West African terminal at Lome in Togo.
"This transaction is the initial cornerstone of a mutually, highly beneficial strategic partnership between CMA CGM and CMHI in operating and developing container terminals on a global basis and extending their relationship as business partners while capitalising on favourable global macro trends," the joint statement said.
Following some pre-closing reorganisation, the transaction is expected to be completed within the first half of 2013, subject to receipt of certain relevant regulatory approval, said the joint statement.
Reports in late December surfaced about talks being well underway last week between the two. CMA CGM chairman Jacques Saade said he hoped to get $600 million to $700 million from the sale of non-core ports assets.
CMA CGM's chief financial officer Michel Sirat revealed last month that the Marseilles company expected to conclude the sale of 49 per cent of its ports unit Terminal Link by the beginning of 2013.
Hong Kong's China Merchants managing director Hu Jianhua has said he wants his company to be a global player like Maersk's APM Terminals, Dubai's DP World and Hong Kong's Hutchison Port Holdings and Singapore's PSA.
PORTS
27 January 2013 - 22:31
CMA CGM sells 49pc of Terminal Link port operator to China Merchants
CASH-STRAPPED French shipping giant CMA CGM is selling 49 per cent of its port operator Terminal Link for EUR400 Hong Kong terminal operator China Merchants Holdings
PORTS
27 January 2013 - 22:31
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