CMA CGM given exclusive deal to work out offer for NOL in a fortnight

Singapore

NEPTUNE Orient Lines (NOL) has signed an exclusivity agreement with France's CMA CGM for a potential acquisition of the Singapore company by way of a pre-conditional voluntary general offer.

If successful, the deal would be one of the top M&A deals involving a Singapore entity and among the biggest tie-ups between container shipping lines in recent years. The SGX-listed Singapore company has a current market capitalisation of about S$3 billion.

The agreement, announced by NOL on Saturday, means AP Moeller-Maersk, the world's biggest container group, is out of the race. NOL had earlier said it was in talks with both AP and CMA CGM - the world's third-biggest container shipper by capacity - on a possible acquisition of its liner business. The exclusivity deal for CMA is valid…