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Again, Bollore Puts Logistic Arm For Sale, Negotiates With CMA CGM
Fred Omotara, Lagos
French conglomerate, Bollore said on Tuesday it had entered into exclusive negotiations with French transport and shipping group CMA CGM to sell its logistics unit.
In a statement, the company said CMA CGM’s indicative offer would give Bollore Logistics a five billion euros ($5.49 billion) enterprise value on a cash free and debt free basis.
Bollore said the exclusivity period for the negotiations with CMA CGM runs until May 8.
CMA CGM, based in Marseille and privately controlled by the founding Saade family, saw its earnings surge in the past two years on the back of high freight rates and saturated supply chains.
It has used the profits to support an investment spree, including a stake in Air France-KLM (AIRF.PA), and, like its shipping rivals, has expanded its presence in logistics.
For Bollore, run by the family of billionaire Vincent Bollore, selling the logistics unit would mark a withdrawal from its historic activity after it sold the Bollore Africa Logistics business last year to shipping company MSC Group.
Confirming the negotiation, CMA CGM, in a statement on it’s website on Tuesday said that the negotiations are in line with the CMA CGM Group’s long-term strategy, based on the two pillars of shipping and logistics.
“The CMA CGM Group announced today that it has entered into exclusive negotiations to acquire the transportation and logistics activities held through Bolloré Logistics.
“The negotiations are in line with the CMA CGM 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.
“If a deal is reached, the acquisition would further strengthen the CMA CGM Group logistics activities.
“The negotiations in no way guarantee an acquisition in the end,” CMA CGM said in a statement on it’s website