Logistics provider Ceva is to take over the freight management business of its major shareholder and strategic partner, the CMA CGM shipping line.
The agreement, part of a wider shake up in the relationship between the companies, comes days after Ceva rejected a takeover bid from Danish rival DSV, which has since withdrawn its offer, news agency Reuters reported.
Ceva and CMA say the freight management change offers substantial potential for growth and future collaboration, not least because the CMA business segment will be a “highly synergetic” addition to Ceva, strengthening the company and creating economies of scale.
“The industrial project between Ceva Logistics and CMA will generate new commercial opportunities supported by an investment in digital transformation and further increased operational efficiency to deliver a strong and sustainable value creation to shareholders and customers,” said Ceva.
French-owned CMA says the agreement establishing a new relationship between the companies will see it bring experience in corporate transformations to help Ceva achieve a recovery plan faster and more efficiently.
The chief executive officer of CMA, Rodolphe Saadé, said: “We are convinced of Ceva Logistics’ potential. This industrial cooperation will make it possible to accelerate its required transformation and to make it a more profitable and efficient leader in logistics for the benefit of its clients, employees andshareholders.”
The purchase price has yet to be agreed and will be paid in cash or shares. Ceva says it will provide more details about the transaction when it announces third-quarter results, due November 13.
Though Ceva’s directors unanimously believe the new partnership with CMA CGM will provide an attractive value proposition to shareholders in the mid and long term, Ceva is offering shareholders preferring to exit 30 Swiss francs per share.