CMA CGM and Maersk Line have announced yesterday that they have entered into a binding agreement whereby CMA CGM would acquire Mercosul Line, one of the leading players in Brazil’s domestic container shipping market.
The acquisition of Mercosul Line would allow CMA CGM to strengthen its service offering to and South America, most notably in Brazil, a market with a strong potential for development, especially on cabotage and “door-to-door” services. This activity is part of CMA CGM’s core strategy, which is to develop intra-regional sea transportation links and complementary services such as logistics.
The Mercosul transaction is subject to Brazilian regulatory approval and the closing of Maersk’s Hamburg Süd acquisition. At the earliest, the integration of Mercosul within CMA CGM will start at the same time as the Hamburg Süd integration, which is expected in Q4 2017. Until then, Mercosul Line will continue business as usual.
The transaction will ensure that the cabotage sector in Brazil remains competitive and that customers continue to benefit from a comprehensive choice of carriers.
“The acquisition of Mercosul represents a milestone in CMA CGM’s development strategy in South America. It is a well-managed company and we will leverage this platform to expand our footprint and service offerings to and from Latin America, seizing opportunities linked to the high growth prospects in this region. As a result, CMA CGM will be able to propose complete door-to-door services continue providing best-in-class services to its customers,” Rodolphe Saadé Chief Executive Officer of CMA CGM said.
“Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition. Its dedicated talents are well regarded both internally and externally. CMA CGM is a good fit for Mercosul and we are confident that they will continue to develop the company going forward,” Søren Toft Chief Operating Officer, Maersk Line said.
The parties have decided not to publicly disclose the price of the sale.
About Mercosul Line
Launched in 1996 and acquired by Maersk in 2006, Mercosul Line is a specialist in the Brazilian internal transport market. Its fleet of four ships operates in Brazil and South America. Mercosul employs 92 land based staff and 160 seafarers. The company reported revenues of 128 million USD in 2016 and offers strong profitability.
About CMA CGM
CMA CGM, founded by Jacques R. Saadé, is a leading worldwide shipping group. Its 445 vessels call more than 420 ports in the world on all 5 continents. In 2016, they carried 15.6 million TEU (twenty-foot equivalent units).Now headed by Rodolphe Saadé, CMA CGM enjoys a continuous growth and keeps innovating to offer its customers new maritime, terrestrial, and logistical solutions. With a presence in 160 countries and through its 600 agencies network, the Group employs 29,000 people worldwide, including 2,400 in its headquarters in Marseilles.
Source: CMA CGM