Maersk and CMA CGM in talks with Singapore's NOL over acquisition
[SINGAPORE] 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 A.P. 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 maximize 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, 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.
Last month, the company reported a net loss of $96 million for the third quarter, widening from a loss of $23 million in the same period the year before.
NOL this year sold its logistics business - APL Logistics Ltd. - to Japan's Kintetsu World Express Inc for $1.2 billion.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Beijing city to subsidise domestic AI chips, targets self-reliance by 2027
Hong Kong bourse regains favour on hopes of a market revival
Chinese sellers go to TikTok school to reach buyers abroad
Gold prices set for weekly decline ahead of US inflation data
Huawei’s new phone sports latest version of made-in-China chip
Meta’s earnings flop sparks US$400 billion sell-off in tech stocks