Final hours! Save up to 55% OFF InvestingProCLAIM SALE

France's CMA CGM to buy New York, New Jersey terminals from Canada's GCT

Published 12/06/2022, 07:43 PM
Updated 12/07/2022, 10:52 AM
© Reuters. Containers are seen stacked up on the container ship CMA CGM Benjamin Franklin at the port of Antwerp, Belgium September 23, 2022. REUTERS/Yves Herman/File Photo

(Reuters) -CMA CGM, one of the world's largest container shipping lines, said on Tuesday that it has agreed to acquire two container terminals at the port of New York and New Jersey from Global Container Terminals (GCT), which will extend its presence in a crucial hub for trade.

The deal comes after French-based CMA CGM last month said it expects a pullback in shipping markets to accelerate in the fourth quarter due to high energy prices and flagging consumer spending, resulting a drop in its profitability following an earnings surge in the past year.

Terms of the deal were not disclosed. According to Bloomberg, which first reported the news, the deal could fetch around $3 billion.

In a statement, CMA CGM said acquired ports in Staten Island, New York, and Bayonne, New Jersey, have a combined capacity of 2 million twenty-foot-equivalent units per year, and has a potential for further expansion, up to almost double capacity.

The acquisition "further consolidates our positions in the United States, a major market among the fastest-growing worldwide, and will help us continue our development," Rodolphe Saade, CMA CGM's chairman and chief executive officer, said in a statement.

© Reuters. Containers are seen stacked up on the container ship CMA CGM Benjamin Franklin at the port of Antwerp, Belgium September 23, 2022. REUTERS/Yves Herman/File Photo

Like its shipping rivals, CMA CGM has extended its presence along the logistics chain in port infrastructure and non-maritime transport services.

The deal adds on to CMA CGM's previous acquisitions in the U.S. of Ingram Micro's Commerce & Lifecycle Services for $3 billion and a container terminal at the port of Los Angeles for around $2 billion last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.