World News
CMA CGM Enters into Exclusive Discussions With NOL Over Acquisition
CMA CGM S.A. (CMA CGM) Sunday announced that it has entered into exclusive talks with Singapore-based Neptune Orient Lines (NOL) and Lentor Investments Pte. Ltd., a wholly-owned subsidiary of NOL's controlling interest Temasek Holdings (Private) Limited (Temasek), over the possible combination of the two companies.
The exclusivity period is expected to run until December 7, 2015.
"Should these discussions lead to an agreement, such a combination would contribute to the consolidation of the container shipping industry, at a time when scale is more critical than ever," asserted CMA CGM.
While the company stresses that no agreement has yet been reached, CMA CGM says that the acquisition of NOL would provide a boost to CMA CGM as a global container shipping force by "leveraging the strong geographic and operational complementarity of both groups."
CMA CGM says it will inform the public of any further developments in "due time."
Earlier in the month, NOL announced that it was in separate talks with both CMA CGM and A.P. Moeller-Maersk A/S (Maersk) over the possible sale of the shipping company that has been valued at S$2.7 billion ($1.9 billion).
Last week, Ship & Bunker reported that Drewry Shipping Consultants Limited (Drewry) asserted that an acquisition by Maersk or CMA CGM would likely not be a financially advantageous move for either company, but noted that of the two, "CMA CGM is the better fit."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 596.50 | 0.50 | 688.00 | 1.00 |
| Rotterdam | 523.00 | 2.50 | 677.00 | 1.00 |
| Houston | 550.50 | 0.00 | 676.50 | 8.00 |
| Fujairah | 582.00 | 2.50 | 758.50 | 5.50 |
| Global 20 Ports Average | 599.50 | 0.50 | 757.50 | 2.00 |
| Global 4 Ports Average | 563.00 | 1.50 | 700.00 | 4.00 |
| Global Average Bunker Price | 644.50 | 1.50 | 813.50 | 0.50 |
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