CMA CGM TAKES OVER GEFCO, RESPECTS THE COMPANY FROM THE WEST SUNNY ORDER

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Update: 06/12/2022

CMA CGM TAKES OVER GEFCO, RESPECTS THE COMPANY FROM THE WEST SUNNY ORDER

The world's leading carrier CMA CGM said it has just acquired all shares of GEFCO, a company providing automotive logistics services. Before the merger took place, GEFCO was owned by Russian Railways (RZD) and the automaker Stellaris.

1. Before sanctions from the West, Russian Railways was forced to divest

The acquisition of GEFCO by CMA CGM, a French carrier, has been temporarily approved by the European Commission, however, the title transfer agreement is still awaiting final approval in a few months.

GEFCO said it will buy back 75% of the shares held by Russian Railways, then these shares will be bought by CMA CGM. Along with the Russian state-owned group, the automaker Stellantis announced that it has sold the remaining 25% ownership in GEFCO to CMA CGM.

PSA Group, a major French car manufacturer that controlled GEFCO until 2012, then sold a 75% stake to RZD for 800 million euros ($869 million). PSA teamed up with Fiat Chrysler to become Stellantis last year.

Currently, the price for the acquisition of all GEFCO shares has not been disclosed by any official source.

2. Taking control of GEFCO, what ambition does the giant carrier have?

Owned by CMA CGM, CEVA Logistics is expected that with its vast experience and network of operations, it will bring many benefits to GEFCO. According to a statement from CMA CGM, GEFCO will be incorporated into CEVA Logistics.

This will create the largest auto logistics service provider in the world and will boost CEVA's leadership position in logistics service contracts, said CMA CGM. The move is also expected to help the company achieve its goal of developing and providing end-to-end logistics and transportation solutions.

Rodolphe Saadé, President and CEO of CMA CGM Group, commented on this acquisition: “The acquisition of GEFCO is an important step in our growth plans, strengthening our position as a company. a global company in the field of transportation and logistics.”

According to Tran Van Hieu-logistician.org