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CMA CGM launches takeover offer for CEVA

  • An offer price of CHF 30 per share, open from February 12
  • The Board of CEVA Logistics AG is fully aligned with this friendly offer
  • A major transformation in line with the CMA CGM Group’s strategy

 

Rodolphe Saadé, Chairman-CEO of CMA CGM, stated: “The launch of this public tender offer is in line with CMA CGM’s overall strategy. By developing a logistics offering to complement our maritime activity, we will be able to propose a full ‘end-to-end’ service to our customers.

This is a milestone in the Group’s history. Once the takeover is completed, CMA CGM will become a 100,000-employee strong Group, generating over USD 30 billion in revenue.”

 

An offer price of CHF 30 per share, open from February 12

The offer’s price is set at CHF 30 per CEVA Logistics share.  This values the share:

  • 12.2% above its average listing over the last 60 days,
  • 62.9% above its CHF 18.42 share price on October 10, 2018, its last day of listing before the announcement of an unsolicited takeover offer by a third party.

This offer has the support of the Board of CEVA Logistics.

CMA CGM Group already controls 33% of the capital of CEVA Logistics.

 

An offer aligned with CEVA’s new strategic plan

This offer is part of the new strategic plan for CEVA, which has been developed jointly with CMA CGM. Moreover, CMA CGM and CEVA have planned to implement major cooperation programs with the following objectives:

  • increase turnover to reach USD 9 billion by 2021 compared to USD 7 billion today (before CEVA’S IPO)
  • reach an adjusted EBITDA between USD 470 and 490 million, compared to USD 260 million in 2018

This plan includes:

  • commercial synergies by proposing the CEVA offer to CMA CGM customers, and vice-versa,
  • integration of CMA CGM’s logistics activity (1,200 people, USD 650 million in turnover) into CEVA to increase CEVA’s footprint in Ocean freight forwarding and allow economies of scale,
  • cost reduction with pooled operations, as well as synergies, such as purchasing and shared services.

With this strategic plan, CMA CGM will also provide CEVA with its experience in business transformation.

 

A key pillar of the overall strategy of the CMA CGM Group

Since he took the leadership of the Group in 2017, Rodolphe Saadé has made logistics a major focus of his development strategy.

By taking control of a global player in logistics, CMA CGM will be able to:

  • offer its customers complete solutions combining transport and logistics
  • complete its maritime transport activity with a less volatile activity

The CMA CGM Group will thus become a world leader in transport and logistics, with a workforce of 100,000 people, generating over USD 30 billion in revenue.

 

Source: CMA CGM
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