CMA CGM’s planned takeover of CEVA Logistics has moved a step closer today after the French line announced a public tender offer which is “fully aligned” with the board of CEVA.
CMA CGM is offering CHF 30 per share, the same as its offer announced last November which the CEVA board recommended shareholders reject. However, CMA CGM says the offer launched today is part of the new strategic plan for CEVA, jointly developed by both companies.
Rodolphe Saadé, chairman and CEO of CMA CGM, commented: “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.”
CMA CGM’s plans for CEVA include increasing turnover to $9bn by 2021 (from $7bn) and the integration of CMA CGM’s logistics activity into CEVA to increase CEVA’s footprint in ocean freight forwarding.
The takeover was approved last week by the European Commission.
This public tender offer for @cevalogistics ’ shares is in line with @cmacgm ’s 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 https://t.co/WVRuiYwwFA
— Rodolphe Saade (@RodolpheSaade) February 12, 2019
OK so i’m keen to be put right if wrong here, but from what i’ve seen CEVA have been running around buying up anyone with a half tasty contract for 15 odd years, and going in for new contracts at crazy low margins in the hope they can make money later. Very quick and easy to grow but is there underlying profit to be had, and will there be customer retention issues down the line when key contacts leave? are the big behemoth forwarders simply on a race to the bottom on price? Kudos to the guys selling out of CEVA though – wish i was in your shoes right now!