CMA CGM acquires Brazilian cabotage box carrier Mercosul fro

Time: 2017-06-16 13:39
FRENCH shipping giant CMA CGM and Maersk Line, the world biggest container shipping company have agreed to transfer ownership of Brazilian box carrier Mercosul Line to CMA CGM for an undisclosed consideration.
Mercosul Line, whose head office is listed as Rijeka, Croatia, has four ships in the 2,500-TEU range employs 92 ashore and 160 afloat. The company posted revenues of US$128 million in 2016 with "strong profitability".
The acquisition of Mercosul Line would allow Marseilles-based 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, said the CMA CGM statement. 
"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," said the press release. 
The transaction is subject to Brazilian regulatory approval and the closing of Maersk's Hamburg Sud acquisition. At the earliest, the integration of Mercosul within CMA CGM will start at the same time as the Hamburg Sud integration, which is expected in the fourth quarters. Until then, Mercosul Line will continue business as usual.
"CMA CGM will now be able to propose complete door-to-door services," said CMA CGM chief executive Rodolphe Saade.
"Mercosul is a well-managed company and we will leverage this to expand offerings to and from Latin America,  seizing high growth prospects in this region," he said.
Said Maersk Line chief operating officer Soren Toft: "CMA CGM is a good fit for Mercosul and we are confident that they will continue to develop the company going forward."
Launched in 1996 and acquired by Maersk in 2006, Mercosul Line is a specialist in the Brazilian internal transport market and operates in Brazil and elsewhere in South America.
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