Only days after the European Commission approved the deal CMA CGM Group has completed the acquisition of its compatriot transport and logistics company, Bolloré Logistics. The deal is valued at €4.85 billion ($5.2 billion) according to CMA CGM who said that the transfer of Bolloré Logistics Sweden AB to the CMA CGM Group remains subject to the latter obtaining foreign investment clearance in Sweden.

As a leading transport and logistics company in France, Bolloré Logistics achieved in 2022 a turnover of €7.1 billion, transported 710,000 TEUs of ocean freight and 390,000 tons of air freight, along with a storage capacity of 900,000 square metres.

This is CMA CGM’s largest acquisition since its creation in 1978 and constitutes a major step in the CMA CGM Group’s logistics development strategy, complementing its historical maritime transport line of business.

Rodolphe Saadé, CEO and Chairman of the CMA CGM Group declared, “I would like to thank the Bolloré Group for the trustful dialogue we have established over the last few months to successfully finalise this acquisition. Within the CMA CGM Group, we are proud to welcome a French flagship built on years of work and experience. The new entity, made up of CEVA and Bolloré Logistics, is the world’s number 5 in its sector. We will now be able to offer our customers a complete range of services and extend our expertise to new businesses. On behalf of the CMA CGM Group and my family, I would like to welcome the 14,000 employees who are joining us today. Together, we will combine our talents and accelerate our development!”

Cyrille Bolloré, CEO and Chairman of the Bolloré Group added, “This is the beginning of a new chapter for Bolloré Logistics’ employees. I am very pleased that they are joining the CMA CGM Group and the Saadé family. They will bring unique expertise and know-how, which have long made the pride of the Group and which will be the pride of CMA CGM tomorrow. It is also a great opportunity for our customers around the world and I would like to take this opportunity to thank them for their trust and loyalty.”

Clearing the EU competition hurdle

The European Commission had a good look into the acquisition among fears it may result in unfair competition in the markets for the provision of sea freight forwarding services in Martinique, Guadeloupe, and French Guiana.

In particular, the Commission found that the transaction would have created important vertical links between CMA CGM’s upstream container line shipping activities on routes connecting Europe with Martinique, Guadeloupe, and French Guiana and Bolloré Logistics’ downstream sea freight forwarding activities in those territories.

The Commission found that CMA CGM could have the ability and incentive to favour Bolloré Logistics at the expense of rival freight forwarders, particularly given CMA CGM’s very high market shares on these overseas routes and the competitive structures in these territories.

To address the Commission’s competition concerns, the parties offered to divest all of Bolloré Logistics’ activities in Guadeloupe, Martinique, Saint Martin, and French Guiana, and several assets in metropolitan France linked to these activities.

These commitments fully address the competition concerns identified by the Commission, by removing the vertical link between CMA CGM’s container liner shipping activities and Bolloré Logistics’ sea freight forwarding and transport activities in the concerned territories.