French shipping and logistics major CMA CGM Group has signed an agreement with China Merchants Port (CMP) to sell a portfolio of stakes in ten port terminals to their joint venture Terminal Link.
CMA CGM plans to cash in USD968 million from the transaction, which is expected to close in spring 2020, pending approval by antitrust authorities and the relevant regulatory bodies.
“The transaction will enable Terminal Link, a joint-venture set up in 2013 and owned 51% by CMA CGM and 49% by CMP, to broaden its geographic footprint and reinforce its growth potential by giving it equity stakes in ten additional terminals,” the French giant said.
The affected terminals are Odessa Terminal (Ukraine), CMA CGM PSA Lion Terminal (CPLT) (Singapore), Mundra Terminal (India), Kingston Freeport Terminal (Jamaica), Rotterdam World Gateway (Netherlands) and Gemalink (Cai Mep, Vietnam).
The others are Qingdao Qianwan United Advance Container Terminal (China), Vietnam International Container Terminal (Ho Chi Minh City, Vietnam), Laem Chabang International Terminal (Thailand) and Umm Qasr Terminal (Iraq).
The sale is part of the group’s plan announced in November, whereby CMA CGM plans to cut its debt and raise more than USD2 billion by mid-2020 in additional cash through the sale of vessels and terminal stakes while extending its debt maturities and reducing its debt by more than USD1.3 billion.