France’s CMA CGM hits Singapore takeover target

Monday, 4 July 2016 00:00 - - {{hitsCtrl.values.hits}}

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AFP: French transport company CMA CGM said last week it had achieved its goal of acquiring 90% of Singapore-based Neptune Orient Lines (NOL), as it seeks to cement its position as a global leader in container shipping.

Marseille-based CMA CGM, the world’s third largest container shipping firm, said it intended to delist the remaining NOL shares from trading on the Singapore stock exchange.

“With the public float of NOL shares now falling below the minimum threshold of 10%, the Singapore Exchange Securities Trading Ltd. may suspend the trading of NOL shares at the close of the Offer,” CMA CGM said in a statement.

“In the event of a trading suspension, CMA CGM does not intend to take steps for the suspension to be lifted.”

The acquisition of NOL, backed by the European Union and China, allows CMA CGM to consolidate its position at the world level, with a market share of around 11.5%, 540 ships and turnover of 19 billion euros ($ 21 billion).

NOL was formed in December 1968, three years after Singapore’s independence, and played a major role in its transformation into a global transhipment hub.