CMA CGM has committed to buying 100% of Bolloré Logistics for €5 billion (around $8.15 billion).

Bolloré Logistics is the transport and logistics division of the Bolloré Group, based in France.

CMA CGM offered to acquire Bolloré Logistics last month, initiating negotiations between the two companies.

Bolloré said in a statement the group had accepted CMA CGM’s put option to buy 100% of the business “strictly as an offer”.

“By joining the complementary strengths of Bolloré Logistics and CEVA Logistics within the CMA CGM Group, Bolloré Logistics will be ideally placed to offer its clients even more efficient and competitive integrated transport and contract logistics solutions,” Bolloré said.

“If the Bolloré Group exercises this put option, following the customary procedures with the employee representative bodies, the sale will then be subject to the approval of the relevant authorities and could be completed in the course of the first half of 2024.”

Bolloré said it would now initiate the information and consultation procedures with the relevant staff representative bodies of the Bolloré Group pertaining to the transaction.

“The decision as to whether or not to exercise this put option will be taken at the end of these procedures,” it said.

“As a result of adjustments agreed between the parties primarily relating to the valuation of minority interests and to IFRS16 debt, the purchase price would amount to 4.650 billion euros, prior to calculating debt and cash on the completion date.”

CMA CGM said acquisition of Bolloré Logistics would position CMA CGM Group’s logistics activities as a “top five” global logistics player.