French shipping firm CMA CGM is looking to raise approximately $2bn by divesting port and shipping assets to fund the takeover of Swiss logistics firm Ceva.

CMA CGM will sell its stake in ten port terminals to Terminal Link, its joint venture (JV) with China Merchants Port Holdings, for approximately $970m.

The Terminal Link deal will be financed by a $468m capital increase funded by China Merchants Port. The company will also provide a loan to finance the takeover.

Scheduled to be finalised in the first quarter of next year, the loan will be converted into a capital increase after a period of eight years.

An additional $860m will be raised through the sale and ship lease-back deal.

The world’s fourth-largest container operator also plans to raise a further $93m by selling its stake in an India-based logistics hub.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Remaining $100m will be raised using a securitisation programme related to customer receivables at Ceva.

CMA CGM CFO Michel Sirat said: “We have a lot of assets and we use them fully.”

He added that the company has no other divestments plans in the short term.

In April, CMA CGM acquired Ceva in a transaction valued at approximately $1.7bn as part of its strategy to diversify its operations and revenue generations.

Post-acquisition, Ceva has been a loss-making venture and CMA CGM expects that the acquired business will start generating profit in 2023.

CMA CGM manages operations in more than 160 countries through 755 agencies, 750 warehouses and a team of 110,000 staff.

The French shipping firm has a fleet of 509 vessels, serves 420 commercial ports and operates on more than 200 shipping lines.