French shipping company CMA CGM has signed an agreement to sell 90% of its equity interest in the Global Gateway South (GGS) terminal in Los Angeles to EQT Infrastructure III and its partner P5 Infrastructure for a total of $875m, including a cash sum of $817m.

The deal will see CMA CGM continue to hold 10% shareholding interest of the GGS terminal, which it purchased last year as part of Neptune Orient Lines (NOL).

CMA CGM executive officer Farid Salem said: “We are very pleased to partner with EQT Infrastructure. Together we will develop GGS into a world class terminal company.

“The terminal will remain an important part of our industry leading logistics network, and will have an opportunity to grow alongside CMA CGM.

“Throughout the sales process, EQT Infrastructure and P5 expertise have focused on growth in addition to a responsible, hands-on ownership approach, which we consider highly beneficial to our future partnership.”

“Throughout the sales process, EQT Infrastructure and P5 expertise have focused on growth in addition to a responsible, hands-on ownership approach.”

The sale agreement also entitles the company to receive additional deferred, contingent cash consideration, which will be based on GGS’ future operating and financial performances.

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.

GGS divestment is expected to enable CMA CGM to complete its financial deleveraging plan, which was initially communicated in December 2015 following the acqusiition of NOL.

CMA CGM currently intends to focus on its shipping business and ensure smooth operations through shared ownership of key terminals.

The transaction is subject to anti-trust and regulatory approvals such as clearance from the Committee on Foreign Investment in the US (CFIUS). It is expected to be completed by the end of this year.

BNP Paribas and HSBC are acting as the financial advisors for CMA CGM throughout the transaction, while Willkie Farr & Gallagher is providing legal assistance.