CMA CGM Nets Financing for NOL Takeover
Image Courtesy: CMA CGMEfforts of the French container shipping company CMA CGM to secure financing for the purchase of Singapore-based Neptune Orient Lines Limited (NOL) seem to have borne fruit.
Namely, the company is reported to have received “firm commitment” from lenders HSBC, BNP Paribas and JPMorgan to bankroll the deal, Reuters reports citing sources familiar with the matter.
CMA CGM initiated exclusive discussions with NOL, the parent company of APL container shipping firm, and its controlling shareholder Lentor Investments Pte. Ltd., with respect to a potential combination, a week ago. The exclusivity period is expected to run until December 7th, 2015.
The price of a 67% stake in the Singaporean company is set at USD 2.2 billion.
CMA CGM is yet to officially confirm the deal and disclose further details when available.
The French liner would benefit from access to APL’s large base of high-end textile and other time-sensitive product customers, as well as its profitable US government contracts linked to the use of US-flag vessels.
The combination of APL’s vessels (0.54 Mteu) with ships of the CMA CGM Group (1.79 Mteu) would create a combined fleet of 2.33 Mteu with an 11.5% global capacity share, based on Alphaliner figures.
World Maritime News Staff
