China Merchants Holdings International (CMHI) has expanded into the European shipping market, buying a 49 per cent share in French container shipping company CMA CGM’s Terminal Link unit, based in Marseille, southern France.
The two companies see the €400m (US$540m) sale as “the first step in a strategic partnership.”
“The transaction is consistent with CMHI's strategy and marks a significant step towards expanding our international footprint,” CMHI chairman Dr Fu Yuning said.
“Terminal Link’s strategic relationship with CMA CGM will help to ensure the long-term sustainability of its operations.”
Terminal Link’s global network includes 15 container terminals, which service the world’s key international shipping routes.
CMHI, the largest public port operator in China, has operations in eight Chinese cities, along with Sri Lanka and Africa.
CMA CGM had indicated it would explore opportunities to reduce its US$4.6bn debt.
“CMA CGM is very confident about this partnership with CMHI, which represents a unique opportunity to accelerate the Group development into terminals investments internationally,” CMA CGM chairman and CEO Jacques Saadé.
