French shipping company CMA CGM has formally launched a cash offer to buy out other shareholders of CEVA Logistics, valuing the Swiss freight forwarder at US$1.67bn, a tie-up aimed at fuelling growth and savings. CMA CGM currently holds 50.6 per cent of CEVA, made up of around 33 per cent of CEVA’s shares, plus derivatives, according to the prospectus for the deal.
Last year, the Swiss company began developing a business plan to boost commercial cooperation and complementary services. At the time, CMA CGM agreed to make a 30 Swiss franc per share offer for the rest of the Swiss company, following a rejected takeover bid in October last year by Danish freight company DSV. CEVA Logistics’ board of directors said that CMA CGM’s offer was “reasonable from a financial perspective” and “provides a fair exit opportunity”.
As agreed in advance, however, CEVA’s board did not recommend shareholders accept the offer on grounds the Swiss-listed company will eventually be worth more as the two companies work together.