CMA to acquire Neptune Orient Lines
With discussions dating back close to a year, CMA CGM has agreed to acquire Neptune Orient Lines(NOL) as the exclusivity period for negotiations were set to expire on December 7, 2015. NOL, the parent company of American President Lines(APL), will receive $2.4 billion dollars in a cash deal in exchange for APL’s 150+ vessel fleet. The acquisition, once antitrust approvals are received, will increase CMA’s current fleet to 563 vessels with capacity exceeding 2.4 million TEUs. The deal is expected to be finalized during the summer of 2016.
The initial plan is for APL to remain its own operating brand per the vice-chairman of CMA CGM, Rodolphe Saadé. APL would then be quickly absorbed into the O3 alliance joining CMA, China Shipping, and United Arab Shipping Co.
As recent industry trends have shown, expect more talk of additional mergers and acquisitions between different ocean carriers in the near future.
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