CMA CGM and Maersk Line announced 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.
With the addition of Mercosul Line, CMA CGM expects to strengthen its service offering to and from South America, most notably in Brazil. The French group intends to develop intra-regional sea transportation links and complementary services such as logistics.
Rodolphe Saadé, Chief Executive Officer of CMA CGM, declared: “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.”
“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,” says Søren Toft, Chief Operating Office, Maersk Line.
The deal 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 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.