French containership giant CMA CGM is making another diversification move by taking a stake in a leading French airline company.
The shipowner said it will buy 30% of Groupe Dubreuil Aero, which owns Air Caraibes and French Bee.
The move is described as a new step forward in the development of two French family-owned groups.
Groupe Dubreuil, chaired by Jean-Paul Dubreuil, has annual revenue of €700m ($816m).
CMA CGM said: "This trust-based partnership established between the two family groups enables the combining of their respective entrepreneurial experience and the consolidating of their key positions in high-potential products and services, and is based on a common ambition to continue to develop their market."
Two seats on the board
CMA CGM is subscribing to a capital increase of €50m, as well as buying other shares. The total investment will be about €70m.
The deal has been approved by Groupe Dubreuil's unions, but is still subject to the approval of the competition authorities in France, French Polynesia and Austria.
The container line will have two directors on the Groupe Dubreuil board.
Last year, CMA CGM built its stake in Swiss group CEVA Logistics to 97.89% following a takeover offer.
Now it will work with Groupe Dubreuil's Hi Line Cargo, a subsidiary tasked with commercial distribution of freight on Air Caraibes and French Bee’s aircrafts.
The companies control 14 modern long-haul aircrafts, including eight Airbus A350s with a capacity of 15 to 25 tonnes of freight.
French advantage overseas
Since the reopening of Orly airport in Paris in June, the airlines have refocused their routes on overseas territories, and have since consolidated market shares in the French overseas territories.
The idea is to support economic development in Guadeloupe, Martinique, Guyana, Reunion and Polynesia.
CMA CGM will be able to offer its clients services that are complementary to ocean freight, while keeping a hold on the transport chain in markets served by both groups, the company said.
Chief executive Rodolphe Saade added: "Our two family groups share the same values and entrepreneurial spirit.
"The acquisition of this stake will enable the CMA CGM Group to strengthen its position in air freight. We will bring to Groupe Dubreuil Aero all our expertise in the transport of goods."
'Fine family company'
Jean-Paul Dubreuil called the shipowner a "very fine French family company" and said he could look forward more confidently to the turbulent period that the air transport sector is going through.
This week, the French shipowner kicked off a new era for container shipping with the first voyage of a large LNG-fuelled vessel designed for the east-west trades.
The 14,800-teu CMA CGM Tenere (built 2020) sailed at the weekend from Tianjin on its maiden voyage from Asia to northern Europe.
The ship was delivered last week from South Korean shipbuilder Hyundai Samho Heavy Industries to Singapore owner Eastern Pacific Shipping (EPS).
