CMA CGM - comment

CMA CGM continues to find ways to utilize its cash with a €280m deal to acquire a last-mile B2C business in France bolstering Ceva. CMA CGM is acquiring 51% of France based Colis Privé. The vendor, Hopps group has just abandoned a merger/IPO deal which valued the equity at €550m in November 21. Hopps Group will continue to hold 39% with the remaining 20% held by Amazon. 

CMA CGM is making hay while the sun shines. In the last 12 months, it has announced several significant acquisitions. CMA CGM is not afraid of growth through debt, and we expect this trend to continue. When the freight rate circle turns the infrastructure assets in the Sea Shipping business may well be recycled for cash. 

Ceva Logistics acquisitions:

- Ingram Micro $3bn, 100% acquired (December 21) 

- Colis Privé €280m, 51% acquired (February 22) 

Sea Shipping acquisitions:

- Fenix (part of Port of Los Angeles) $2.3bn, 100% acquired (November 21) 

- Abu Dhabi (UAE) $154m concession agreement (September 21).

- Algeciras (Spain), price undisclosed, additional 25% acquired from DIF (March 21) 

- Tripoli (Lebanon), price undisclosed, 100% acquired (March 21) 

- Alexandria (Egypt), price undisclosed, 100% of a new terminal (operate and manage).