CMA CGM plans to acquire an equity stake of almost 25% in CEVA Logistics AG in order to expand its presence in the logistics sector.

According to CMA CGM, it has committed to mandatory convertible securities of CEVA that are worth an estimated CHF380-450 million (US$390-461 million). These securities will be convertible into CEVA common shares, subject to the required regulatory approvals.

The equity investment is conditional on the successful completion of CEVA’s planned initial public offering on the SIX Swiss Exchange, announced on April 20, 2018.

“With this proposed investment in CEVA, CMA CGM makes a significant move, in line with its development strategy,” said Rodolphe Saadé, chairman and CEO of CMA CGM. “CEVA is a major player in the logistics business, which is closely related to the shipping industry. Together, the two companies will also explore possible cooperation allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.”

CMA CGM will nominate two members of CEVA’s board of directors following the equity investment.

CEVA has more than 56,000 employees and temporary or agency workers in 160 countries, and posted over US$7 billion in revenue for 2017. The company’s contract logistics division provides end-to-end supply chain solutions and manages more than 9 million square metres of warehouses in more than 750 sites worldwide, while the freight forwarding division’s blue-chip customer base includes leading players in the automobile, consumer and retail, e-commerce, e-commerce, industrial, aerospace, technology and healthcare sectors.

The two companies have agreed to look into potential opportunities for the development of joint commercial offerings according to terms that will be defined in the coming months, according to CMA CGM.