Shipping group CMA CGM has agreed to acquire the Fenix Marine Services (FMS) container terminal at the port of Los Angeles in a deal worth around $2 billion that will extend its presence in a crucial hub for transpacific trade.
CMA CGM currently has a 10% stake in FMS and it is to buy the remaining 90% from investment fund EQT Infrastructure IIIFrance-based CMA CGM, one of the world's largest container shipping lines, expects to pay out around $1.8 billion for the 90% stake and will finance the deal from its own funds, it added.
"The swift recovery of the global economy has demonstrated the importance of ports and logistics infrastructure," Rodolphe Saadé, chairman and CEO of CMA CGM, said in a statement. CMA CGM will act as terminal operator for FMS and plans to invest in expanding the capacity of the site, notably by building a new ship berth, extending the container yard and increasing rail capacity for onward transport.
Its earnings have jumped this year as the pandemic has led to high freight rates and saturated vessel capacity.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Maersk triples quarterly profit despite lower container volumesShipping group A.P. Moller-Maersk said on Tuesday record-high freight rates boosted quarterly earnings despite lower container volumes due to congestion at ports.
Read more »
Review: Culture Clash revives its visually haunting 'Chavez Ravine' for the digital stageNow streaming on Center Theatre Group's website, this cinematic reimagining of the troupe's play offers a history lesson to a too-forgetful Los Angeles.
Read more »
Watch the Gucci Love Parade Runway Show LiveThe Gucci Love Parade runway show is about to begin! Watch it live here:
Read more »
Rapper Cardi B will host 2021 American Music AwardsRapper Cardi B will host the American Music Awards in Los Angeles on Nov. 21.
Read more »
Cardi B to Host 2021 American Music AwardsCardi B will host the 2021 American Music Awards from Los Angeles on Sunday, Nov. 21.
Read more »
Kobe Bryant Honored With Incredible Halloween Pumpkin TributeKobe Bryant was showcased in an extravagant Halloween display in Los Angeles.
Read more »