CMA CGM’s €5 Billion Acquisition of Bolloré Logistics Gets EUC Nod

The European Commission has granted approval to shipping major CMA CGM for its proposed €5bn. acquisition of compatriot freight forwarder Bolloré Logistics. However, concerns arose during the investigation, revealing potential competition reduction in certain regions like Martinique, Guadeloupe, and French Guiana.

The Commission found that the transaction would have created important vertical links between CMA CGM’s upstream container lining shipping activities on routes connecting Europe with Martinique, Guadeloupe, and French Guiana and Bolloré Logistics’ downstream sea freight forwarding activities in those territories.

Furthermore, the Commission was concerned that the shipping line could have the ability and incentive to favour Bolloré Logistics at the expense of rival freight forwarders, especially given CMA CGM’s very high market shares on these overseas routes and the competitive structures in these territories.

To address this, CMA CGM must implement remedies, including the divestiture of Bolloré Logistics’ activities in specified territories.

The acquisition aims to strengthen CMA CGM’s logistics business, positioning it as a top-five player in global logistics, as announced last year. The Commission’s approval is contingent on these remedies, ensuring a competitive landscape in sea freight forwarding services.

Leave a Reply

Your email address will not be published. Required fields are marked *