NOL shares jump on CMA CGM exclusive takeover talks

Why are European shipping giants willing to pay a hefty premium for troubled shipping firm NOL?

 

Shares in Singapore-listed Neptune Orient Lines (NOL) jumped nearly 6% on Monday following news at the weekend that it was in exclusive takeover discussions with CMA CGM.

NOL’s shares were trading at SGD1.185 on Monday afternoon up 5.8%. CMA CGM has signed an exclusivity agreement with NOL’s main shareholder Lentor Investments, owned by Temasek Holdings, with a deadline for a deal by the end of 7 December.

CMA CGM is the world’s third largest container line with an 8.8% market share in terms of capacity according to Alphaliner, while NOL’s liner brand APL has a 2.7% market share.



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