French shipping company CMA CGA said on Friday that the company has successfully acquired Almost 100% GEFCO, which is an auto transport company formerly co-owned by Stellantis, a car-making company and the Russian Railways (RZD). The future of auto logistics company GEFCO was clouded before the acquisition due to the uncertainty of the Russian invasion of Ukraine. The final approval of the deal is pending and is expected to be settled in the coming months. However, the financial details of the deal have not been disclosed by the company as of now.
Headquartered in France, 75% of the company GEFCO was in control of the Russian railways that were officially run by the state government, an entity that was sanctioned quickly five weeks ago due to the ongoing war in the region of eastern Europe. GEFCO was founded in the year 1949 as a firm named Les Groupages Express de Franche-Comte (GEFCO). Almost 10 years ago, the Russian Railways joined the company as the majority shareholder. Leading its way in the industry with great pace, GEFCO is presently the top European leader in the business of finished vehicle logistics. The company according to the website, also claims to be on the list of the top 10 global partners in the field of supply chain solutions.
French shipping company CMA CGA announced the acquisition of 100% of GEFCO.
With a large network of 47 countries, there are around 11,500 staff members working with GEFCO around the world with more than 2,500 staff working in France. The company made the announcement of the acquisition on Friday, which is thought to have a capital value of around $488 million and has been submitted to contest authorities for approval. The European Commission has permitted CMA CGM to take control of GEFCO’s capital as a part of a special process. The pending final approval is expected to take place in the upcoming months.
This acquisition will help to strengthen the wide range of logistics services provided by CEVA Logistics, a subsidiary of CMA CGM logistics, to the existing customers of the company in Europe and France, expanding CMA CGM at a great pace. The company posted a record of $18 billion value profit in the year 2021. In May 2020, CMA CGM bagged a loan guarantee related to the early rise in the cases of coronavirus. The CEO and chairman of Saade has commented on the deal and said that the acquisition of GEFCO is a one-step toward the growth of the company in the development strategy and will also help them to strengthen its position as a player in the global market the logistics industry.
Around 11,500 staff members are working with GEFCO around the world.
The subsidiary company of CMA CGM, CEVA will also be benefitted along with GEFCO, in terms of strengthening the position to become the leader of the world’s top leaders in the automotive transport and logistics industry, as it will allow the company to improve and enhance the potential in the business of e-commerce logistics. The firm is currently trying to create a leader in the French markets to serve the already existing customers around the world.