CMA CGM acquires Brazilian-flag operator Mercosul Line from A.P. Moller-Maersk, as part of the agreement with regulators over Maersk’s acquisition of Hamburg Sud. The finance details of the transaction were not disclosed, but following the new acquisition CMA CGM will strengthen its South American offerings, especially in the Brazilian cabotage market, and will further move with its strategic goal of developing intra-regional networks and complimentary logistics services. The integration of Mercosul and its four ships within CMA CGM will start in Q4 2017, but company will continue to operate with same name without interruption.
“The acquisition of Mercosul represents a milestone in CMA CGM’s development strategy in South America”, said the CEO of CMA CGM, Rodolphe Saade. “It is a well-managed company and we will leverage this platform to expand our footprint and service offerings to and from Latin America, seizing opportunities linked to the high growth prospects in this region”, added he.
Mercosul Line, which Maersk acquired 11 years ago, is one of the leading players in Brazil’s domestic container shipping market. The sale of the company was one of the obstacles in front of regulators for getting approval for Maersk’s acquisition of Hamburg Sud. Hamburg Sud controls Alianca, a Brazilian flag subsidiary that has about 60% of the nation’s total capacity by TEU. Mercosul holds another 20%, and the merged company would have controlled an overwhelming majority of Brazil’s coastwise shipping industry, falling under the anti-trust authorities and regulators.
EU regulators approved Maersk’s transaction for Hamburg Sud in April on the condition that the latter line withdraws from five trade routes.