After successfully acquiring a controlling interest in NOL, CMA CGM has consolidated the Singapore-based company since 14 June, says a press release from the company.
Singapore’s Neptune Orient Lines (NOL) is the parent company of container carrier APL.
As part of the NOL integration process, CMA CGM reviewed the portfolio of brands deployed on its various lines and concluded that only two brands should be used on each trade.
By 30 June, the total stake had risen to nearly 93%. Since that date, a compulsory acquisition process has been initiated, which will result in CMA CGM owning all of the company's outstanding shares. Subsequently, as previously announced, NOL will be delisted.
The acquisition has made CMA CGM a driving force behind market consolidation, while enabling the Group to strengthen its competitive position and resilience in a challenging market environment.
APL will now serve as the core brand alongside CMA CGM on the Transpacific, Transatlantic and Asia-Gulf lines. ANL will be repositioned on the Asia-Oceania trade. Reorganisation of the APL and CMA CGM lines will be further improved when Ocean Alliance is implemented next April.
In addition, the synergy and rationalisation programme is now being implemented, with the goal of enabling APL to reduce its costs and enter a new phrase of growth.
Work is continuing apace in preparation for the start-up of the Ocean Alliance operating partnership with Cosco Container Lines, Evergreen Lines and Orient Overseas Container Lines.
As previously announced, the Alliance is scheduled to start operating in April 2017, once the regulatory approvals have been granted. Like the other CMA CGM subsidiaries, NOL will be part of Ocean Alliance from the beginning.