FRENCH shipping giant CMA CGM has obtained firm commitments from banks to finance the takeover of Singapore's Neptune Orient Lines (NOL), valued at US$2.2 billion, Reuters reports, citing two informed sources.
CMA CGM, which is in exclusive talks to initially buy nearly 67 per cent of NOL from state investor Temasek Holdings, has tapped lenders including HSBC, BNP Paribas and JPMorgan, sources said.
CMA CGM, NOL, Temasek and the banks declined comment.
The sale of Temasek's stake would trigger a mandatory offer for the rest of NOL and could lead to de-listing of NOL, whose APL unit is ranked as the world's 13th-biggest container shipping firm.
The deal would enable the combined entity to dominate the transpacific lanes with a 12 per cent share ahead of the nine per cent possessed by world leading Maersk, said Credit Suisse analyst Timothy Ross.Rating agency Fitch in a report this week warned that overcapacity, lower economic growth and weak commodity prices would create a challenging environment for Asian shipping companies in the medium term.
WORLD SHIPPING
04 December 2015 - 22:15
France's CMA CGM secures bankers' backing for NOL takeover financing
FRENCH shipping giant CMA CGM has obtained firm commitments from banks to finance the takeover of Singapore's Neptune Orient Lines (NOL), valued at US$2.2 billion, Reuters reports, citing two informed sources.
WORLD SHIPPING
04 December 2015 - 22:15
France's CMA CGM secures bankers' backing for NOL takeover financing
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