CMA CGM to acquire Borusan's logistics subsidiary in $440m deal
French shipping giant CMA CGM's subsidiary CEVA Corporate Services has signed a deal to acquire Turkish conglomerate Borusan's logistics arm, Borusan Tedarik Zinciri Cozumleri ve Teknoloji, for $440 million, according to a filing by the Turkish company.
Borusan Yatirim said in the exchange filing that the price was subject to ordinary net cash and working capital adjustments, adding that the deal was subject to approval from competition authorities and other relevant regulatory bodies.
Borusan Tedarik operates the largest port in Turkey's manufacturing hub of Gemlik, with an annual capacity to handle 1,500 ships and around 400,000 TEU.
CMA CGM is the world's third-largest container line.
CEVA said its planned acquisition of Borusan Tedarik, would nearly double its warehousing and distribution footprint in Turkey, adding around 570,000 square metres to its existing 620,000 square metres of space.
The deal would also boost its domestic ground transport operations, with the combined activities expected to handle nearly 1 million domestic shipments annually, CEVA said in a statement on its website. Borusan Tedarik's network is set to strengthen CEVA's connections with Europe, the company added.
CEVA said Borusan Tedarik's strong ties in the automotive sector would help lift its finished vehicle logistics (FVL) operations into a top-three position domestically.
The acquisition is also expected to expand CEVA's ocean freight capacity by 25 per cent and place its air freight operations among the top five in Turkey.
(Reporting by MiraƧ Eren Dereli and Canan Sevgili; Editing by Tuvan Gumrukcu and David Evans)