2227
Views

CMA CGM Agrees Deal to Sell Ten Terminals

file photo of Ukraine
file photo of Ukraine

By The Maritime Executive 12-21-2019 05:06:48

The CMA CGM Group has signed an agreement with China Merchants Port (CMPort) to sell a portfolio of stakes in 10 port terminals to Terminal Link, their joint-venture set up in 2013 and owned 51 percent by CMA CGM and 49 percent by CMPort. 

The sale price is $968 million was announced on November 25, 2019, as part of a plan for the Group to reduce its debt. Through the various planned transactions, the CMA CGM Group expects to raise more than $2 billion in additional cash by mid-2020, while extending its debt maturities and reducing its debt by more than $1.3 billion.

The terminals are:

•      Odessa Terminal (Ukraine)
•      CMA CGM PSA Lion Terminal (CPLT) (Singapore)
•      Mundra Terminal (India)
•      Kingston Freeport Terminal (Jamaica)
•      Rotterdam World Gateway (Netherlands)
•      Gemalink (Cai Mep, Vietnam)
•      Qingdao Qianwan United Advance Container Terminal (China)
•      Vietnam International Container Terminal (Ho Chi Minh City, Vietnam)
•      Laem Chabang International Terminal (Thailand)
•      Umm Qasr Terminal (Iraq)

The transaction is expected to close in Spring 2020, pending approval by antitrust authorities and the relevant regulatory bodies.

CMPort has been actively exploring and acting on acquisition opportunities overseas.