French line CMA CGM has launched a $1bn takeover offer for CEVA Logistics as it aims to stretch beyond shipping operations.
The shipowner said it is paying CHF 30 ($30.25) per share to build its stake from 33% in the Swiss company.
Last month, CEVA said the offer was a fair exit opportunity for investors, but added they could realise a higher value by retaining their shares.
CEVA viewed a more realistic price as CHF 40.
The French line spent up to $462m buying into CEVA through a subscription for convertible securities last year.
"The board of CEVA Logistics is fully aligned with this friendly offer," CMA CGM said on Tuesday.
Rodolphe Saade, chairman and CEO of CMA CGM, added: “The launch of this public tender offer is in line with CMA CGM’s overall strategy.
"By developing a logistics offering to complement our maritime activity, we will be able to propose a full ‘end-to-end’ service to our customers."
Big plans to expand
The French line said the offer price is 12.2% above CEVA's average share price over the last 60 days.
The two companies plan to increase turnover to $9bn by 2021, from $7bn today.
They also want to boost adjusted EBITDA to between $470m and $490m, compared to $260m in 2018
CMA CGM's logistics activities - 1,200 staff and a $650m turnover - will be merged into CEVA.
This will allow economies of scale, cost reductions with pooled operations, and savings, it said.
The move is significant as bigger box lines try to capture the whole supply chain and become less reliant on volatile freight rates.
CMA CGM will become a group with revenue of $30bn and 100,000 employees.
