France's CMA CGM offers to buy Singapore's Neptune Orient Lines
French transportation firm CMA CGM SA said Monday it has offered to buy Singapore-based container liner Neptune Orient Lines (NOL) in a bid to "cement" its position as a global leader in shipping.
The deal announced in a filing with the Singapore Exchange where NOL is listed values the Singapore container firm at around Sg$3.4 billion ($2.4 billion), according to the total number of company shares.
The offer however needs to fulfil some preconditions, mainly the approval of anti-trust authorities, within a year after Monday's announcement, the filing said.
"We are supportive of this transaction as it presents NOL with an opportunity to join a leading player with an extensive global presence and solid operational record," said Tan Chong Lee, head of portfolio management at state-linked investment firm Temasek Holdings, which owns 67 percent of NOL.
He said the combination of the two companies "will create a leading shipping company" worldwide.
CMA CGM said the acquisition of NOL will enable it to "cement its position among the global leaders in the container shipping industry" with a capacity of 2.4 million TEUs, a market share of about 11.5 percent, a fleet of 563 vessels and a combined turnover of approximately $22 billion.
© 2015 AFP