Following the recent collapse of Hanjin Shipping, “there will be a wave of consolidation” in the industry and CMA CGM could participate even after its recent purchase of APL parent Neptune Orient Lines, according to vice chairman Rodolphe Saadé.
CMA CGM is still hungry for acquisitions even after its recent $2.4 billion purchase of Singapore-based Neptune Orient Lines, parent of container carrier APL, according to vice chairman Rodolphe Saadé.
Saadé earlier this week told a group of reporters in Abidjan, Ivory Coast that South Korean ocean carrier Hanjin Shipping filing for court receivership could spur further mergers and acquisitions among shipping companies.
The past year has already seen two large-scale M&A deals in the container shipping industry, in addition to CMA CGM’s deal for APL, which solidified the French company’s position as the third largest container carrier worldwide. State-owned conglomerates COSCO and China Shipping (CSCL) merged at the behest of the Chinese government, making the combined “COSCOCS” company the fourth largest carrier, and Hapag-Lloyd merged with United Arab Shipping Co. (UASC) in a deal that made them the fifth largest.
“With the collapse of Hanjin, there will be a wave of consolidation in the sector and CMA CGM is on the lookout for opportunities if they should arise,” said Saadé. “We think that small or medium-sized operators are going to go bust or be forced to join large operators like us.”
Saadé: CMA CGM ‘on the lookout’ for more acquisitions
