Five billion dollars! Another freight forwarding logistics brand will disappear

Based on 2022 results, CMA CGM's logistics business (centered on Ceva) and the combined business of Bollore logistics reached approximately $24 billion in revenue and generated more than 2 million TEU of sea freight and 800,000 tons of air freight. 

The warehouse space will be increased by more than 900,000 square meters in addition to the 10.3 million square meters already managed by Ceva.

"This is a game-changing acquisition in the diversification of CMA CGM shipping logistics, which will place it among the top five global logistics companies," the France-based shipping group described the acquisition.

However, any deal of this size and scope raises questions about business overlap. For example, to what extent are Bollore Logistics and Ceva Logistics direct competitors in the field of air and sea freight forwarding and contract logistics? Instead, how complementary are they across lines of business and geographic regions? Other related questions include whether the Bollore brand will disappear and whether the acquisition could lead to job cuts.

A spokesman for CMA CGM said the group could not answer the question at this time as the deal still required regulatory approval.

However, a spokesman for Bollore Logistics said: "Our two companies operate in the same industry, but our skills and networks complement each other. The configuration of the freight industry requires us to be a global player with a global presence and local expertise. Bollore Logistics wants to continue to support its customers' national business development by providing tailor-made, competitive, flexible and innovative solutions."

As for the Bollore Logistics brand, the spokesman said: "Nothing has been decided yet, but it is quite logical that the brand will not survive in the medium term." Bollore is not expected to cut jobs as a result of the acquisition, it added.

Thomas Cullen, senior analyst at research consultancy Transport Intelligence, said: "There is definitely some competition and overlap (between the two companies) in the freight forwarding business. However, Bollore is more involved in pharmaceuticals and luxury goods, while Ceva is more involved in cars and electronics."

"In terms of serving geographic areas, historically they have had a different focus, with Ceva having a strong air presence in the Pacific, while Bollore obviously has strong ties to France." Bollore has been expanding its presence in Asia. A few years ago, it expressed interest in growing in North America as well. As part of CMA-CGM, it may not be that necessary."

He added: "In any acquisition, the speed and depth of integration is always critical. Of course, the jewel in Bollore's crown has always been its African business "- sold to Mediterranean shipping company MSC late last year.