CMA CGM Group has acquired nearly 100% of Gefco, an automotive logistics provider which is understood to have been impacted by sanctions against Russia.
Headquartered in France, Gefco was previously co-owned by French-Italian carmaker Stellantis and state-run Russian Railways, the latter of which has reportedly been placed under western sanctions.
Stellantis CEO Carlos Tavares announced on Friday the company had sold its remaining 25% stake in Gefco to the CMA CGM Group.
“The sale of this non-strategic asset marks the last step of our exit plan, initiated a decade ago, from the transportation and logistics industry,” Mr Tavares said.
“Moving forward, Stellantis now has an efficient global supply chain with diverse logistics suppliers, among which Gefco continues to play a meaningful role.”
According to Reuters, Gefco had announced earlier this month that it intended to buy back the 75% of its shares still owned by Russian Railways.
Competition authorities are yet to formally approve CMA CGM’s acquisition of the company, but the European Commission has authorised the group to acquire Gefco’s capital immediately. Final approval is expected to be handed down in the coming months.
CMA CGM chairman and CEO Rodolphe Saadé said the acquisition strengthens the group’s position as a global player in transport and logistics.
“With Gefco, our subsidiary Ceva will become the world leader in automotive logistics, having recently enhanced its capabilities in e-commerce logistics with the acquisition of Ingram Micro Commerce and Lifestyle Services.”
Ingram Micro CLS was acquired in December last year to accelerate CMA CGM’s supply chain capabilities in contract logistics and e-commerce expertise.
“We are creating a French leader to serve our customers around the world,” Mr Saadé said.
The addition of Gefco will enable Ceva Logistics to strengthen its position in contract logistics and in key markets, particularly in France and wider Europe.
CMA CGM Group intends for Gefco to continue operating in a secure regulatory framework before boosting its development in international markets.
“With more than 70 years of expertise in industrial logistics, Gefco is proud to join the CMA CGM Group, an undisputed world leader in maritime shipping and logistics,” Gefco CEO Luc Nadal said.
“The project led by CMA CGM will allow Gefco to continue our activity in a stable environment, will support the transformation we have initiated, and will strengthen our development in the years to come.”
Mr Nadal said the link between the two French companies will create opportunities for innovation and sustainable growth on an international scale.
“I am proud of the work accomplished by all of the Gefco teams around the world on behalf of our customers, and I am confident in the future with CMA CGM and Ceva Logistics.”