CMA CGM to proceed with NOL takeover after China all-clear
CMA CGM received on Wednesday confirmation of the deal's approval by the anti-monopoly Bureau of the Chinese Ministry of Commerce (MOFCOM), it said in a statement. "With regulatory approvals now received from MOFCOM and the European Commission on its proposed voluntary general cash offer for NOL as announced on 7 December 2015 (Offer), CMA CGM expects to announce the Offer by June 2, 2016 (before 7 a.m.) at the latest," it said.
The European Commission gave its approval to the deal at the end of April.
The takeover offer worth US$2.4 billion (S$3.31 billion) marks CMA CGM's biggest ever acquisition and comes as container lines seek to cope with a severe market downturn through greater scale.
The Marseille-based, family-owned firm swung to a net loss in the first quarter due to weak freight rates, although it said its volumes continued to grow faster than the industry average.