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CMA CGM canvasses banks for financing its NOL takeover bid
FRENCH shipping giant CMA CGM has approached banks to finance its potential takeover bid for Singapore's Neptune Orient Lines Ltd (NOL), reports Bloomberg.
The world's third biggest container line is in talks with BNP Paribas, HSBC and JPMorgan Chase for loans to back an offer for NOL, reports New York's Maritime Professional.
Under the rules, CMA CGM should have enough money to make good its offer for Neptune Orient Lines, which has a market value of S$3.1 billion (US$2.2 billion), and includes its principal holding the APL container shipping line, the world's 10th biggest.
CMA CGM is the third biggest container company in the world and has 8.8 per cent of market share according to container analyst Alphaliner.
NOL was started as Singapore's national shipping line, and following a US$285 million merger in 1997 with American President Lines (APL), it has developed into a company with more than 6,000 staff across 80 countries.
Adding Singapore-based APL's capacity to French carrier CMA CGM's 1.79 million-TEU fleet would give the combined carrier an 11.5 per cent share of global capacity, behind market leader Maersk at 14.7 per cent with a three million-TEU fleet, and second-ranked Mediterranean Shipping Co (MSC) at 13.4 per cent with 2.7 million TEU.
Singapore's state investment company, Temasek Holdings, which owns 67 per cent of NOL, put the shipping company up for sale in mid-2015 due to high debt levels and low profits.
CMA CGM has been given until December 7 to complete a due diligence review and negotiate the definitive agreements for the offer.
If acquisition talks between NOL and CMA CGM fail to progress, Maersk Line says negotiations with the Singaporean company could resume, Singaporean media reports.
The world's third biggest container line is in talks with BNP Paribas, HSBC and JPMorgan Chase for loans to back an offer for NOL, reports New York's Maritime Professional.
Under the rules, CMA CGM should have enough money to make good its offer for Neptune Orient Lines, which has a market value of S$3.1 billion (US$2.2 billion), and includes its principal holding the APL container shipping line, the world's 10th biggest.
CMA CGM is the third biggest container company in the world and has 8.8 per cent of market share according to container analyst Alphaliner.
NOL was started as Singapore's national shipping line, and following a US$285 million merger in 1997 with American President Lines (APL), it has developed into a company with more than 6,000 staff across 80 countries.
Adding Singapore-based APL's capacity to French carrier CMA CGM's 1.79 million-TEU fleet would give the combined carrier an 11.5 per cent share of global capacity, behind market leader Maersk at 14.7 per cent with a three million-TEU fleet, and second-ranked Mediterranean Shipping Co (MSC) at 13.4 per cent with 2.7 million TEU.
Singapore's state investment company, Temasek Holdings, which owns 67 per cent of NOL, put the shipping company up for sale in mid-2015 due to high debt levels and low profits.
CMA CGM has been given until December 7 to complete a due diligence review and negotiate the definitive agreements for the offer.
If acquisition talks between NOL and CMA CGM fail to progress, Maersk Line says negotiations with the Singaporean company could resume, Singaporean media reports.
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