CMA-CGM will buy CEVA, news by Hebei Longsheng
| CMA-CGM will buy Ceva (eventually), UPS and K+N may have concerns Container-line CMA-CGM has announced an enhanced strategic arrangement with Ceva Logistics that will see CMA-CGM offer to buy Ceva shares at a 33% premium to the last closing price. That follows DSV’s decision to withdraw a bid at a similar price. Ceva’s revenues are 33.2% the size of CMA-CGM’s, though its lower profitability means Ceva's EBITDA is just 15.1% the size of CMA-CGM's. The deal is driven by a trend towards end-to-end service provision between third party logistics (3PL) companies and container-lines which Maersk has pioneered. The largest 3PLs currently using CMA-CGM’s services on U.S.-inbound lines, and potential competitors to Ceva, include OEC (2.9% of CMA-CGM’s volumes), UPS (2.3%) and K+N (2.0%). The 3PLs may choose to review their commercial relations with CMA-CGM, particularly K+N which shares a joint stockholder with Hapag-Lloyd. |
