CMA CGM, a container shipping firm, has secured approval from the European Commission to acquire Neptune Orient Lines (NOL), in Southeast Asia.
This European Commission was notified of the acquisition on 8 March, 2016, clearing it after a phase 1 review.
In order to get clearance for the review, NOL has agreed to exit from the G6 shipping alliance.
CMA CGM stated that the two companies will continue to cooperate with the remaining authorities in order to close the review.
The voluntary general cash offer for NOL will only be carried out when all pre-conditions have been satisfied.
Last December, NOL’s majority shareholders, Temasek and its affiliates, agreed to tender all of their shares in acceptance of the offer.
CMA CGM’s offer of SGD1.30 per share represents a 49% premium to NOL’s unaffected share price.
Set up in 1978, CMA CGM is a leading firm with 470 vessels. It operates in 160 countries and employs 22,000 people worldwide, including 2,400 at its headquarters in Marseille, France.
NOL is headquartered in Singapore and is listed on the Singapore Exchange.