Shipping magnate CMA CGM has entered a binding agreement with Maersk Line surrounding the purchase of Mercosul Line, one of the leading players in Brazil’s domestic container shipping market.
The deal would see CMA CGM acquire Mercosul, in a bid to strengthen its service offering to and from South America.
“It [Mercosul] is a well-managed company and we will leverage this platform to expand our footprint and service offerings to and from Latin America, seizing opportunities linked to the high growth prospects in this region,” explained Rodolphe Saadé, chief executive of CMA CGM.
“As a result, CMA CGM will be able to propose complete door-to-door services continue providing best-in-class services to its customers.”
The Mercosul transaction is subject to Brazilian regulatory approval and the closing of Maersk’s well-publicized Hamburg Süd acquisition.
At the earliest, the integration of Mercosul within CMA CGM will start at the same time as the Hamburg Süd integration, which is expected in the fourth quarter of this year.
Launched in 1996 and acquired by Maersk in 2006, Mercosul Line is a specialist in the Brazilian internal transport market. Its fleet of four ships operates in Brazil and South America, with the company reporting revenues of US$128m in 2016.
“Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition,” said Søren Toft, chief operating officer of Maersk Line.
“Its dedicated talents are well regarded both internally and externally. CMA CGM is a good fit for Mercosul and we are confident that they will continue to develop the company going forward.”