An agreement between two container carrier giants will see CMA CGM acquire Maersk Line owned Mercosul Line, a player in Brazil’s domestic container shipping market. The price of the sale was not made public.
The transaction is subject to Brazilian regulatory approval as well as the closing of Maersk’s recent Hamburg Süd acquisition. At the earliest, Mercosul's integration within CMA CGM is expected to start in Q4 2017 at the same time as the Hamburg Süd integration. Until then, Mercosul Line will continue business as usual.
Launched in 1996 and acquired by Maersk in 2006, Mercosul Line operates a fleet of four ships in Brazil and South America. The company employs 92 land based staff and 160 seafarers, and it reported revenues of $128 million in 2016.
CMA CGM chief executive officer, Rodolphe Saadé, said, “The acquisition of Mercosul represents a milestone in CMA CGM’s development strategy in South America. It is a well-managed company and we will leverage this platform to expand our footprint and service offerings to and from Latin America, seizing opportunities linked to the high growth prospects in this region. As a result, CMA CGM will be able to propose complete door-to-door services continue providing best-in-class services to its customers.”
“Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition. Its dedicated talents are well regarded both internally and externally. CMA CGM is a good fit for Mercosul and we are confident that they will continue to develop the company going forward,” said Søren Toft, chief operating office, Maersk Line.