CMA CGM takes a significant stake in the last mile delivery company
Shipping powerhouse CMA CGM announced on Monday that it has tentatively agreed to acquire a 51% stake in French last-mile delivery company Colis Privé Group, bolstering its spread in third-party logistics and trade. electronics as part of a strategy to be an integrated provider of supply chain services.
The third-largest container line in the world by fleet size has reached the agreement to strengthen its large subsidiary Ceva Logistics, which it acquired in 2019. Ceva is investing heavily to increase its service capacity in e-commerce, which increased by 16.6% globally. clip last year to $4.2 trillion and is expected to grow 50% by 2025 to $7.4 trillion, according to Statista. Colis Privé will have access to Ceva’s huge customer portfolio.
Colis Privé specializes in home delivery for more than 200 e-merchants, with a network of nearly 110 agencies across France and a presence in Belgium, Luxembourg, Morocco and soon in the Netherlands.
CMA CGM, based in Marseille, France, said it would use its finances, technology backbone and international footprint to accelerate Colis Privé’s international expansion.
“The acquisition of a majority stake in Colis Privé is an important step in the development strategy of our logistics activities. This operation will allow us to offer end-to-end logistics solutions to our e-merchant customers for whom the last mile is a critical step. By relying on the global presence of our subsidiary Ceva Logistics, our ambition is to develop Colis Privé internationally, starting with Europe where the company is already established”, declared Rodolphe Saadé, CEO of CMA CGM, in the press release.
Shipping carriers are using record profits from the shipping boom over the past two years to broaden their portfolios and provide more of a closed-loop service with better control and visibility of shipments for strategic customers.
CMA CGM last month acquired the e-commerce division of tech retail giant Ingram Micro to expand Ceva’s capabilities beyond basic contract logistics. The Ingram Micro unit specializes in e-commerce contract logistics and omnichannel fulfillment. CMA CGM also launched an all-cargo airline last year, CMA CGM Air Cargo. It is also finalizing a deal to become sole owner of the Fenix Marine Terminal at the Port of Los Angeles.
Container lines Maersk and Mediterranean Shipping Co. are also aggressively expanding into logistics and other freight modes. In 2021, Maersk entered into agreements to acquire Hong Kong-based LF Logistics, air cargo specialist Senator International and two e-commerce fulfillment companies.
Last week, MSC made an offer to buy Italian airline ITA Airways.
Terms of the agreement with Colis Privé owner HOPPS Group were not disclosed. CMA CGM could increase its share in the future. The transaction is subject to normal regulatory review by antitrust regulators and consultation with labor unions.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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