French shipping company CMA CGM has closed its agreement with China Merchants Port (CMP) with the divestment of the stakes in eight port terminals to Terminal Link in an $815m transaction.
Terminal Link is a joint venture (JV) of CMA CGM and CMP. CMA CGM owns a 51% stake, while CMP owns the remaining 49% stake.
The deal is expected to help Terminal Link to expand its geographic footprint and global network, which will boost its business development prospects.
The deal includes the Odessa Terminal in Ukraine, CMA CGM PSA Lion Terminal (CPLT) in Singapore, Kingston Freeport Terminal in Jamaica and Rotterdam World Gateway in the Netherlands.
Additionally, Qingdao Qianwan United Advance Container Terminal in China, Vietnam International Container Terminal, Ho Chi Minh City in Vietnam, Laem Chabang International Terminal in Thailand and Umm Qasr Terminal in Iraq are a part of the deal.
The company added that the sale of the last two terminals will be completed by the end of first-half this year after receiving approval from competent regulatory agencies.
The deal is an all-cash consideration that is valued at more than $150m.
The transaction is a step towards its $2.1bn liquidity plan that was announced in November last year.
The Group has boosted its balance sheet due to the Covid-19 pandemic that has led to a decrease in volumes.
CMA CGM Group chairman and CEO Rodolphe Saadé said: “This transaction announced on 20 December 2019 is an important step in its 2.1 billion USD liquidity plan and will allow us to strengthen our balance sheet.
“Amid the high uncertainty created by the Covid-19 health crisis, the closing of this transaction as previously announced demonstrates the resilience of the CMA CGM Group.”