France’s Bollore Group is selling its transport and logistics operations to CMA CGM.
The prospective buyer said in a brief statement on Tuesday that it is in exclusive talks to acquire the business.
“The negotiations are in line with the CMA CGM Group’s long-term strategy, based on the two pillars of shipping and logistics,” the French container line added.
“The group’s strategy is to offer end-to-end solutions in support of its customer’s supply chain needs.”
Bollore later said it had received a “spontaneous indicative offer” from CMA CGM, valuing the operations at €5bn ($5.5bn).
The two sides are now working towards a final deal by 8 May.
Le Marin website had earlier reported that an announcement on the deal was due after close of trading in Paris on Tuesday.
The transport and logistics division is Bollore’s main non-media subsidiary and its disposal would signal an end to three decades in the sector.
CMA CGM will become one of the world’s top five freight forwarders if a deal is completed.
Le Marin claimed the shipowner’s social and economic committee has been told of the transaction.
CMA CGM will be taking over 35,000 staff in 100 countries.
The transport division is led by Cyrille Bollore, one of principal Vincent Bollore’s sons.
Of total group revenue of €20.7bn in 2022, the unit accounted for €7.1bn, up 36% year on year, with operating profit of €437m, a rise of 71%.
But 36% of the revenue was lost at the end of the year through the sale of Bollore Africa to CMA CGM’s rival MSC Mediterranean Shipping Company.
Bollore entered the sector in 1986 with the takeover of Scac, then in 1991 bought shipowner Delmas-Vieljeux, which was sold to CMA CGM in 2005.
Rumours of the latest deal emerged in February, but neither side commented.
Expanding in logistics and ro-ro shipping
CMA CGM has already expanded in the logistics sector with the takeover of Ceva and Gefco in recent years.
In March, it bought a 12% stake in Brittany Ferries, and it is taking over French ropax and ro-ro operator La Meridionale.
The line also has a stake in Neoline Armateur, which is building a wind-powered ro-ro vessel that CMA CGM is helping to finance.
