Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Maersk eyeing purchase of Singapore's NOL

Share this article

Maersk eyeing purchase of Singapore's NOL
Photo CHARLY TRIBALLEAU/Scanpix
11:35 CET+01:00
Singapore container shipping firm Neptune Orient Lines (NOL) said at the weekend it was in talks with Denmark's A.P. Moeller-Maersk and France's CMA CGM SA over a potential sale of the company.
In a statement filed with the Singapore Exchange on Saturday, NOL said the talks were "preliminary" and were in relation to "a potential acquisition" of the Singapore firm.
 
"NOL has a duty to assess all options to maximize shareholder value and improve its competitiveness," the statement said.
 
It added however that "there is no assurance that any such discussions will result in any definitive agreement or transaction, or that any offer for NOL will be made".
 
Marseille-based container transportation and shipping company CMA CGM has made a preliminary offer for NOL, which has a market value of Sg$2.7 billion ($1.9 billion), Bloomberg News reported, quoting people with knowledge of the talks.
 
CMA CGM is carrying out due diligence on NOL, which is 65 percent owned by Singapore state-linked investment firm Temasek Holdings, although the French shipping firm has not been granted exclusivity, Bloomberg added.
 
Maersk is also talking separately with NOL but the discussions are less advanced, Bloomberg said.
 
NOL has been racking up losses due to sluggish global trade and lower freight rates.
 
Last month, the company reported a net loss of $96 million for the third quarter, widening from a loss of $23 million in the same period the year before.
 
NOL this year sold its logistics business -- APL Logistics Ltd. -- to Japan's Kintetsu World Express Inc. for $1.2 billion.
Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

The Swedish university tackling the challenges of tomorrow

Ranked among the world's best young universities in the QS Top 50 Under 50, Linköping University (LiU) uses innovative learning techniques that prepare its students to tackle the challenges of tomorrow.

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement