The CMA CGM Group has entered into exclusive negotiations to acquire Bolloré Logistics’ transportation and logistics activities for an enterprise value of €5 billion ($5.5 billion).
CMA CGM said that the negotiations were in line with its long-term strategy, based on the two pillars of shipping and logistics
If a deal is reached, the acquisition would further strengthen the CMA CGM Group logistics activities.
The negotiations in no way guarantee an acquisition in the end, the Group noted.
“The Bolloré Group confirms that it has received a spontaneous offer from the CMA CGM Group for the acquisition of its transportation and logistics activities held through Bolloré Logistics, on the basis of a €5 billion cash free / debt free enterprise value,” Bolloré Group said.
The companies will engage in contractual negotiations of a put option, with an offer by CMA CGM, expected by May 8, 2023.
Bolloré said that the duo will report on the outcome of these negotiations in due course. The transaction will remain subject to regulatory approvals and no decision to sell will be taken until the end of the information and consultation procedures of the competent employee representative bodies.
Bolloré SE’s Board of Directors will decide on a simplified cash tender offer for their own shares, which includes a proposed contingent €0.25 earn-out per share if the sale of Bolloré Logistics is made in accordance with the terms of the CMA CGM acquisition offer, which has already been positively reviewed by the ad hoc committee and will be considered in the independent expert’s report on the fairness of the offer price.
The talks are being revealed in the wake of CMA CGM’s exclusive discussions with STEF Group to acquire 100% of La Méridionale, a mixed freight and passenger shipping company based in Marseille.
With this acquisition, CMA CGM Group wishes to pursue its development in the Mediterranean, while strengthening the position of the port of Marseille and the French shipping industry.
The acquisition plans are being revealed on the back of a massive shipbuilding order by CMA CGM involving 16 vessels.