CMA CGM has entered into a binding agreement to acquire Brazilian shipping line Mercosul from Maersk Line for an undisclosed amount.

According to CMA CGM, the acquisition will strengthen its service offering to and from South America, particularly the Brazilian market, and is in line with CMA CGM’s strategy to develop intra-regional shipping links and logistics services.

“The acquisition of Mercosul represents a milestone in CMA CGM’s development strategy in South America,” said Rodolphe Saadé, chief executive officer of CMA CGM. “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.”

The transaction is subject to Brazilian regulatory approval and the closing of Maersk’s acquisition of Hamburg Süd. The integration of Mercosul into CMA CGM will start at the same time as the integration of Hamburg Süd into Maersk, which is expected in the fourth quarter of 2017.

“Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition,” said Søren Toft, chief operating officer of Maersk Line, which acquired Mercosul in 2006. “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.”