CMA CGM holds exclusive talks with Neptune Orient

CMA CGM has confirmed that it has entered into exclusive discussions with Singapore-based Neptune Orient Lines (NOL) and Lentor Investments, a wholly owned subsidiary of Temasek Holdings (Private) Ltd, its controlling shareholder, regarding a potential combination with NOL. The exclusivity period is expected to run until 7 December 2015.

According to a statement from CMA CGM, if these discussions lead to an agreement, “such a combination would contribute to the consolidation of the container-shipping industry, at a time when scale is more critical than ever. It would further reinforce CMA CGM as a global force in container shipping, leveraging the strong geographic and operational complementarity of both groups”.

However, CMA CGM stressed that no agreement has yet been reached and no assurance can be given that these discussions will lead to a definitive agreement.

This move follows the earlier confirmation that NOL was in preliminary talks with CMA CGM and AP Moller-Maersk regarding a potential acquisition. Now it is clear that CMA CGM is in prime position.