Cash-rich CMA CGM enters negotiations to buy Bolloré Logistics for $5.5bn

Two of France’s richest people, Rodolphe Saadé and Vincent Bolloré, have entered negotiations that could see cash-rich liner CMA CGM take over the transport and logistics businesses of compatriot conglomerate Bolloré for an enterprise value of €5bn ($5.5bn).

With record earnings in the last two years, the world’s third-largest container carrier has been on a buying spree, picking up ships, ports and logistics companies such as Colis Privé and Gefco.

“The negotiations are in line with the CMA CGM Group’s long-term strategy, based on the two pillars of shipping and logistics. The Group’s strategy is to offer end-to-end solutions in support of its customer’s supply chain needs,” the Marseille-based company said.

The exclusivity period for the negotiations, which will run until May 8, in no way guarantees an acquisition in the end, CMA CGM noted.

Bolloré Logistics operates in nearly 150 countries, including over 80 partners and 360 sites. It employs around 15,000 people and describes itself as one of the top 10 firms in the transportation and logistics sector. Last year, Bolloré also sold its logistics unit in Africa to Mediterranean Shipping Co (MSC) for $6.1bn.