CMA CGM pulls out of race for CP Ships

CMA CGM pulls out of race for CP Ships

   CMA CGM has confirmed it will not put in a bid for CP Ships, ending weeks of speculation that the French carrier was going to top Hapag-Lloyd parent company TUI AG’s $2.3 billion offer.

   “Given the price of the (TUI) offer, CMA CGM does not intend to make a counter-bid,” CMA CGM said in a statement.

   CMA CGM was the first carrier to confirm it was in talks with CP Ships about a takeover, only to see TUI’s offer of $21.50 per share accepted by the CP Ships board soon after.

   The fast-growing CMA CGM has since completed the acquisition of Bollore’s shipping activities for $600 million.

   Rumors of an imminent counter-bid helped raise CP Ships’ share price above that of TUI’s offer to $22.67 last Friday. CP Ships’ shares closed yesterday at $21.52.

   TUI’s offer is open for acceptance until Oct. 7, and to be successful requires acceptance by two-thirds of CP Ships shareholders.