ASEAN KEY DESTINATIONS
Maersk and CMA CGM in talks with Singapore’s NOL over acquisition
SINGAPORE container shipping firm Neptune Orient Lines (NOL) said at the weekend it was in talks with France’s CMA CGM SA and Denmark’s AP Moeller-Maersk over a potential sale of the company.
In a statement filed with the Singapore Exchange on Saturday, NOL said the talks were “preliminary” and were in relation to “a potential acquisition” of the Singapore firm.
“NOL has a duty to assess all options to maximise shareholder value and improve its competitiveness,” the statement said.
It added however that “there is no assurance that any such discussions will result in any definitive agreement or transaction, or that any offer for NOL will be made.”
Marseille-based container transportation and shipping company CMA CGM has made a preliminary offer for NOL, which has a market value of S$2.7 billion (US$1.9 billion), Bloomberg News reported, quoting people with knowledge of the talks.
CMA CGM is carrying out due diligence on NOL, which is 65 per cent owned by Singapore state-linked investment firm Temasek Holdings, although the French shipping firm has not been granted exclusivity, Bloomberg added.
Maersk is also talking separately with NOL but the discussions are less advanced, Bloomberg said.
NOL has been racking up losses due to sluggish global trade and lower freight rates.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below