French shipping group CMA CGM has agreed to sell a 90% stake of the Global Gateway South (GGS) in Los Angeles to EQT Infrastructure for $817 million.
CMA CGM will remain a minority shareholder holding 10% of the GGS terminal, which it acquired last year as part of Neptune Orient Lines (NOL).
The group said the sale would help it pay down debts following the NOL takeover and that it was part of its strategy to focus on shipping, while securing its operations through shared ownership of key terminals.
Executive Officer of CMA CGM, Farid T Salem: “We are very pleased to partner with EQT Infrastructure. Together we will develop GGS into a world class terminal company.
“The terminal will remain an important part of our industry leading logistics network, and will have an opportunity to grow alongside CMA CGM.”
EQT Infrastructure said it has partnered with port operating firm P5 Infrastructure to develop a value creation plan aimed at “transforming GGS into a world class operation”.
The deal is expected to complete by the end of 2017, subject to anti-trust and regulatory approvals, including clearance from the Committee on Foreign Investment in the United States
BNP Paribas and HSBC acted as financial advisors and Willkie Farr & Gallagher acted as legal advisor to CMA CGM.