Official: CMA CGM acquires GEFCO
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Reports that the CMA CGM Group was set to acquire logistics firm GEFCO were proven to be correct; the deal has been confirmed by the French shipping giant today.
In a statement released this morning, CMA CGM revealed it is acquiring 100% of the capital of GEFCO, who operate in the automotive logistics and multimodal supply chain space.
The acquisition has been submitted to competition authorities for approval. However, as CMA CGM explains, in a special procedure, the European Commission has authorized CMA CGM to acquire the capital of GEFCO immediately, pending the final approval that will take place in the coming months.
For those who have not been following the story, the special procedure has been enacted due to GEFCO’s Russian shareholders.
CMA CGM already owns CEVA Logistics, and it is said that the latter’s expertise and network will be used to the benefit of GEFCO. Indeed, according to CMA CGM’s statement, GEFCO will be integrated within CEVA Logistics.
This, says the CMA CGM group, “will create the world’s leading automotive logistics provider and will reinforce CEVA’s leadership position in contract logistics.” The move is also said to facilitate the firm’s plan to develop and provide end-to-end shipping and logistics solutions.
Commenting on the deal, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said:
“The acquisition of GEFCO represents a further step in our development strategy and strengthens our position as a global player in transport and logistics. With GEFCO, our subsidiary CEVA will become the world leader in automotive logistics, having recently enhanced its capabilities in e-commerce logistics with the acquisition of Ingram Micro CLS. We are creating a French leader to serve our customers around the world.”
As for what CMA CGM intends to do with GEFCO, the company says GEFCO shall continue operating in a secure regulatory framework. There are also plans to boost GEFCO’s development, especially in international markets, by harnessing the Group’s technology and logistics capabilities.
GEFCO has been operating for over 70 years and has customers in the aerospace, pharmaceuticals, energy and retail sectors. It has built a network spanning 47 countries and employs around 11,500 staff around the world – with more than 2,500 of them in France.
Luc Nadal, GEFCO’s CEO, also offered comment on the acquisition:
“With more than 70 years of expertise in industrial logistics, GEFCO is proud to join the CMA CGM Group, an undisputed world leader in maritime shipping and logistics. The project led by CMA CGM will allow GEFCO to continue our activity in a stable environment, will support the transformation we have initiated and will strengthen our development in the years to come. This link between two French companies will bring many opportunities for GEFCO in terms of innovation and sustainable growth, particularly internationally, for the benefit of our customers. I am proud of the work accomplished by all of the GEFCO teams around the world on behalf of our customers, and I am confident in the future with CMA CGM and CEVA Logistics.”