CMA CGM, the French shipping conglomerate, reveals to have submitted a bid to acquire family owned Bolloré Logistics in a $5.5 billion deal.
Following the news, the Bolloré Group indicated that the acquisition might result in a merger of its logistics operation with that of CMA CGM’s CEVA Logistics.
“The joining of Bolloré Logistics’ and CEVA Logistics, a subsidiary of the CMA CGM Group, owing mostly to the complementarity of their activities and networks, would pursue these same objectives,” the group said in a joint statement.
The group highlighted that they are committed to support their customers in their international development by delivering “tailor-made, competitive, agile, and innovative solutions”.
“The current prospects for freight demand impel us to be a global player, with a worldwide geographical footprint and local expertise,” the group said in a statement.
Bolloré Logistics was ranked number 10 in terms of yearly airfreight volumes in 2021, according to the most recent data available from consultancy Armstrong & Associates, with 656,000 tonnes, while CEVA was placed number 14 with 474,000 tonnes.
Based on 2021 numbers, the total airfreight volumes of the two corporations would be 1.13 million tonnes.
Expeditors would fall out of the top five and a gap would close between the combined company and the top four forwarders, Kuehne+Nagel (2.2 million tonnes), DHL Global Forwarding (2.1 million tonnes), and DB Schenker (1.4 million tonnes).
Bolloré is ranked number 27 while CEVA Logistics is ranked number 10 at the moment.
The rankings could be influenced by last year’s performance, when European enterprises were hit harder by inflation and the Ukraine crisis than the rest of the world, and there will undoubtedly be some customer churn because of the merger.
“The negotiations are in line with the Group’s long-term strategy, based on the two pillars of shipping and logistics. The Group’s strategy is to offer end-to-end solutions in support of its customer’s supply chain needs.”
The CMA CGM Group stated that the negotiations do not guarantee that an acquisition will take place.