CEVA Logistics and CMA CGM have signed a new agreement to broaden their relationship and cooperation.
According to CEVA, it will acquire the freight management business of CMA CGM as part of the expanded strategic partnership. The industrial project between CEVA and CMA CGM will generate new commercial opportunities supported by an investment in digital transformation and further increased operational efficiency.
The board of directors at CEVA has agreed with CMA CGM that CMA CGM will offer to CEVA Logistics’ shareholders wishing to exit their investment in CEVA to purchase their shares for CHF30.00 (US$30.00) per share. The exit alternative will be provided in the form of a tender offer by CMA CGM which is open to all shareholders.
According to CMA CGM, the agreement will make it possible for CEVA Logistics to accelerate its transformation by bringing CMA CGM’s operational expertise and its experience in corporate transformations to help CEVA achieve its recovery plan faster and more efficiently, creating new commercial opportunities, adding value to the complementary relationship between CEVA’s and CMA CGM’s freight management activities, and creating economies of scale. CEVA’s customers will also benefit from a broader offering of services.
“We are convinced of CEVA Logistics’ potential,” said Rodolphe Saadé, chief executive officer of CMA CGM. “This industrial cooperation will make it possible to accelerate its required transformation and to make it a more profitable and efficient leader in logistics for the benefit of its clients, its employees and its shareholders. It reconfirms CMA CGM as the reference shareholder as well as its long-term partner.”
CEVA Logistics began trading its shares on the SIX Swiss Exchange in May 2018, while CMA CGM received regulatory approval for the acquisition of a 24.99% stake in CEVA in July 2018. The two companies have agreed that CEVA Logistics will remain a listed company with an arm’s-length business relationship with CMA CGM.
Further details will be provided in connection with the announcement of the Q3 2018 results and in connection with the publication of a response statement to the tender offer prospectus by CMA CGM, according to CEVA Logistics.