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CMA CGM third-largest carrier after Delmas takeover

CMA CGM third-largest carrier after Delmas takeover

   Fast growing CMA CGM has moved past Evergreen as the third-largest ocean carrier, following the $600 million acquisition of French industrial group Bollore’s shipping interests.

   The move also sees CMA CGM enter the Europe/West Africa trade for the first time.

   Bollore said the cost involved $320 million in cash plus the assumption of about $280 million in loans.

   Under terms of the agreement, CMA CGM has acquired specialist Europe/West Africa carriers Delmas, OT Africa Line and Setramar. CMA CGM also takes on a 50 percent share in SudCargos, as well as Delmas’ vessels, containers and headquarters in Le Havre. In West Africa, CMA CGM will become Bollore’s partner for inland logistics and for the network of agencies.

   “Combining Delmas’ specific focus on Africa with CMA CGM’s expertise in both the east/west and north/south routes is logical,” said Alain Wils, CMA CGM’s chief executive vice president.

   The addition of Delmas’ 49 ships will enlarge CMA CGM’s fleet by 57,000 TEUs, giving it a fleet of 244 ships with a capacity of 484,000 TEUs.

   In 2004, Delmas carried 520,000 TEUs, and posted revenues of 850 million euros ($1.06 billion). It has 1,100 employees.

   At the time of writing, no one at CMA CGM was available to comment whether the acquisition of Delmas will influence CMA CGM’s decision to bid for CP Ships or not.