The French ocean liner has announced its intention to acquire Brazilian cabotage company Mercosul Line, currently owned by Maersk Line but up for sale as a condition of its merger with Hamburg Sud, by the end of 2017.
French ocean carrier CMA CGM will purchase Mercosul Line, a Brazilian cabotage specialist, from parent company Maersk Line, according to a statement from the company.
Financial terms of the deal were not disclosed.
Mercosul Line was acquired by Maersk Line in 2006 and currently operates a fleet of four vessels in Brazil and South America. CMA CGM said it plans to develop intra-regional sea transportation links and services in South America and expects Mercosul to play an integral part in this.
The transaction is subject to Brazilian regulatory approval and the closing of Maersk’s acquisition of German carrier Hamburg Süd, said CMA CGM. Maersk Line announced in April it would be selling Mercosul as a condition of its merger with the north-south specialist carrier.
According to CMA CGM, the deal will ensure that “the cabotage sector in Brazil remains competitive and that customers continue to benefit from a comprehensive choice of carriers.”
“The acquisition of Mercosul represents a milestone in CMA CGM’s development strategy in South America,” said Rodolphe Saade, chief executive officer at CMA CGM. “It 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. As a result, CMA CGM will be able to propose complete door-to-door services continue providing best-in-class services to its customers.”
Soren Toft, chief operating officer at Maersk Line, said Mercosul is highly respected and 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,” he added.
At the earliest, the integration of Mercosul’s operations with those of CMA CGM will start at the same time as the Maersk-Hamburg Süd integration, which is expected at the end of 2017. Until then, Mercosul Line will continue to conduct its business as usual, said CMA CGM.
CMA CGM to acquire Mercosul Line
