CMA CGM Group is boosting the development of its strategic logistics with its recent announcement of its acquisition of European automotive logistics company, GEFCO.

The French container transportation and shipping company — which owns the world's third-largest container line — said the deal will accelerate GEFCO's transformation and strengthen its development within CEVA Logistics.

"The CMA CGM Group is acquiring nearly 100% of the capital of GEFCO, European leader in automotive logistics and international expert in multimodal supply chain. The acquisition has been submitted to competition authorities for approval," it said.

CMA CGM noted that as part of a "special procedure," the European Commission has authorized CMA CGM to acquire the capital of GEFCO immediately, pending the final approval that will take place in the coming months.

The company noted that the acquisition will strengthen the range of logistics services that CEVA Logistics, CMA CGM's logistics subsidiary, provides to its customers, especially in France and the rest of Europe. 

"The acquisition of GEFCO represents a further step in our development strategy and strengthens our position as a global player in transport and logistics. With GEFCO, our subsidiary CEVA will become the world leader in automotive logistics, has recently enhanced its capabilities in e-commerce logistics with the acquisition of Ingram Micro CLS," said Rodolphe Saadé, chairman and CEO of the CMA CGM Group.

Largest automotive logistics provider

CMA CGM noted that GEFCO will benefit in the future from CEVA Logistics' expertise and network, enabling it to expand both its business and its customer portfolio.

"The acquisition of GEFCO and its integration within CEVA Logistics will create the world’s leading automotive logistics provider and will reinforce CEVA’s leadership position in contract logistics," CMA CGM added, further saying that with the addition of GEFCO, CEVA Logistics will continue expanding around the world and strengthening its position in key markets, especially France and the rest of Europe. 

GEFCO, a French company, is a European leader in contract logistics and a specialist in the automotive segment with particular expertise in finished vehicle logistics.

The logistics provider has been operating for over 70 years now and also has customers in the aerospace, pharmaceuticals, energy, and retail sectors.

Strategic development in logistics

"With the deal to acquire GEFCO, the CMA CGM Group is moving forward with its plan to develop and provide end-to-end shipping and logistics solutions in order to support its customers' supply chains," CMA CGM said.

The Group noted that recently announced the completion of the acquisition of Ingram Micro’s Commerce & Lifecycle Services (CLS) and of Colis Privé have accelerated the development of CEVA Logistics in e-commerce and in key market segments, such as technology, retail, and fashion. 

Luc Nadal, GEFCO’s CEO said the CMA CGM deal will allow GEFCO to continue its activity in a "stable environment" and support the company's transformation.

"With more than 70 years of expertise in industrial logistics, GEFCO is proud to join the CMA CGM Group, an undisputed world leader in maritime shipping and logistics," Nadal said. "This link between two French companies will bring many opportunities for GEFCO in terms of innovation and sustainable growth, particularly internationally, for the benefit of our customers."