CMA CGM SA has agreed to buy a 25% equity stake in global logistics operator Ceva Logistics, the ocean carrier said Friday, as the French container shipping line moves to expand its reach in international supply chains beyond port-to-port transportation. The agreement comes as Netherlands-based Ceva announced it would launch an initial public offering on Switzerland’s stock exchange at a price of 27.50 Swiss francs to 52.50 Swiss francs per share ($28.23 to $53.88). CMA CGM, the world’s No. 3 container shipping line by capacity, said it would “subscribe for mandatory convertible securities” worth up to about $462 million and would take two seats on the Ceva board. The carrier said the agreement is subject to the completion of the Ceva IPO and to approvals from various regulatory authorities. The agreement follows upheaval in the shipping business following a downturn that triggered major consolidation among the world’s biggest operators. The changes have left many of the remaining carriers looking for ways to differentiate their services and go beyond port-to-port container operations to reach deeper into the supply chains of big international retailers and manufacturers. CMA CGM holds 11.5% of the world’s container shipping capacity, according to research group Alphaliner. China’s Cosco Shipping Co. Ltd. is buying another competitor, Orient Overseas Container Line, and will likely leapfrog the French carrier this year, gaining a broader shipping network and more pricing power with its retail and manufacturing shipping customers. CMA CGM Chairman Rodolphe Saade said the companies would look for ways to launch joint services once the equity transaction is completed. “Together, the two companies will also explore possible cooperations allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport,“ Mr. Saade said in a statement. Ceva Logistics is the world’s 10th-largest freight forwarder, according to research group Armstrong & Associates, and manages more than 96 million square feet of warehouse space in more than 750 sites in the world. The company said in announcing its IPO that it had $7 billion in revenue last year with adjusted earnings before interest, taxes, depreciation and amortization of $280 million. Write to Paul Page at paul.page@wsj.com Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
French carrier CMA CGM is to acquire a 25 % stake in Ceva Logistics , the Dutch supply - chain management firm , in an effort to expand its landside operations . The agreement is subject to Ceva 's planned IPO and listing on the Swiss stock exchange , in which the container shipping line will " subscribe for mandatory convertible securities " valued at nearly $ 462 m and appoint two directors to the Ceva board . CMA CGM has 11.5 % of world shipping capacity , but is under pressure from rivals such as China 's COSCO , which is in the process of acquiring Orient Express Container Lines to give it greater market share .