CMA CGM swoops in with a €5 Bn offer for Bolloré Logistics
Shipping giant CMA CGM has put in a bid to Bolloré Group to acquire its transportation and logistics activities held through Bolloré Logistics. The offer is priced at €5 billion, Bolloré Group said, noting that, negotiations have now started following the spontaneous offer.
The €5 Billion offer is based on a cash free/debt free enterprise value. Following this offer, the Bolloré Group and the CMA CGM Group entered into exclusive talks to enable a confirmatory due diligence process and engage in contractual negotiations of a put option, based on such offer, to be issued by CMA CGM, if it so decides, on or about May 8, 2023.
The offer from CMA CGM is along the lines of what MSC did late last year with the acquisition of Bolloré Africa Logistics, as well as Maersk’s acquisition of its compatriot project logistics expert, Martin Bencher.
CMA CGM added that the negotiations are in line with the Group’s long-term strategy, based on the two pillars of shipping and logistics. The group’s strategy is to offer end-to-end solutions in support of its customer’s supply chain needs. If a deal is reached, the acquisition would further strengthen the CMA CGM Group logistics activities.
The transaction will remain in any event subject to regulatory approvals and no decision to sell will be taken until the end of the information and consultation procedures of the competent employee representative bodies.
The CMA CGM offer is valued at €5.75 per share with the Bolloré Group’s board suggesting an addition of a contingent €0.25 earn-out per Bolloré share if the offer leads to the sale. This proposal has already been favourably reviewed by the ad hoc committee set up by Bolloré and will be taken into account by the independent expert A2EF in its report to the Group’s Board of directors regarding the fairness of the offer.