CMA CGM Expands Mediterranean Footprint withStrategic Turkish Acquisition
CEVA Corporate Services, a subsidiary of French shippinggiant CMA CGM, has signed a binding agreement to acquire Borusan TedarikZinciri Cozumleri ve Teknoloji, a logistics subsidiary of Turkey's BorusanGroup, for $440 million. The acquisition, which remains subject to regulatoryapprovals from competition authorities, represents a significant expansion ofCMA CGM's logistics operations in Turkey and surrounding regions. As theworld's third-largest container shipping company, CMA CGM continues its strategyof vertical integration by strengthening its logistics capabilities throughCEVA, which it acquired in 2019.
"As a Top 5 global logistics player, we haveidentified Turkey as one of our strategic geographies where we expect to growsignificantly," said Mathieu Friedberg, CEO of CEVA Logistics."Complementing our existing presence in Turkey with the reputable expertsand operations of Borusan Tedarik would put us in a position to offer evengreater value to our combined customers and, as a result, grow faster than themarket organically."
Deal Structure Extends Beyond Turkish Borders
The comprehensive agreement encompasses not only BorusanTedarik's operations in Turkey but also extends to its subsidiaries in Germany,Bulgaria, Hong Kong, and China, creating a truly international transaction.Borusan Holding currently owns 69.47% of Borusan Tedarik, making thisacquisition a significant divestiture for the Turkish conglomerate. The dealfollows CMA CGM's pattern of strategic logistics acquisitions, including IngramMicro's CLS division, GEFCO, and most recently, Bolloré Logistics.
Founded 52 years ago to meet the internal logistics needsof Borusan Group, the company has evolved into a global player with extensivecapabilities across multiple transportation modes and warehousing operations.This heritage of continuous development makes it an attractive acquisitiontarget for CEVA Logistics as it seeks to strengthen its position in the Turkishmarket and broader region.
Transformative Impact on CEVA's RegionalOperations
The acquisition would dramatically transform CEVA'scapabilities in Turkey, nearly doubling its domestic warehousing anddistribution operations by adding approximately 570,000 square meters ofcapacity. Additionally, the deal is expected to expand CEVA's ocean shippingcapabilities by 25% in the region and elevate its air freight business to amongthe top five operators in Turkey.
Particularly significant is the boost to CEVA's finishedvehicle logistics business, which would rank among the top three in the Turkishdomestic market following the acquisition. Borusan Tedarik's strongrelationships in the automotive industry will complement CEVA's existingoperations and create new opportunities for growth in this specializedlogistics segment.
Strategic Rationale and Market Positioning
CMA CGM's continued investment in logistics capabilitiesreflects the shipping giant's strategic vision of becoming a comprehensiveend-to-end supply chain provider. By strengthening its presence in Turkey, acritical geographic crossroads connecting Europe, Asia, and the Middle East, CMACGM enhances its ability to offer integrated services across multipletransportation modes and logistics functions.
Turkey's strategic location makes it an increasinglyimportant logistics hub, particularly as companies seek to diversify supplychains and reduce dependence on single sourcing regions. The acquisitionpositions CEVA to capitalize on growing trade flows through Turkey and supportsthe company's ambition to grow faster than the market through both organicexpansion and strategic acquisitions.
"CEVA is becoming bigger, stronger and smarter, sothat we can then grow faster," noted Friedberg, highlighting the company'strajectory of continuous expansion and capability enhancement. This growthstrategy has been consistently implemented since CMA CGM's acquisition of CEVAin 2019, with multiple major logistics acquisitions completed in recent years
Industry Context and Future Outlook
The acquisition comes amid a broader trend of verticalintegration in the shipping and logistics industry, with major ocean carriersexpanding their presence across the supply chain. CMA CGM's continuedinvestment in logistics capabilities allows it to offer more comprehensiveservices to customers while diversifying revenue streams beyond the volatilecontainer shipping market.
As global supply chains continue to evolve in response togeopolitical tensions, pandemic-related disruptions, and changing tradepatterns, companies with diverse geographic footprints and comprehensiveservice offerings are well-positioned to meet customer needs for resilience andflexibility. The addition of Borusan Tedarik's capabilities to CEVA's existingnetwork enhances the company's ability to provide these solutions acrossmultiple markets.
"We have initiated the transfer process of BorusanTedarik, one of our investments that adds significant value to our country andsector, to CEVA Logistics, a global provider of integrated logisticsservices," a Borusan Group representative stated, acknowledging thestrategic importance of the transaction for both companies and the broaderlogistics sector in Turkey.
Regulatory Process and Timeline
The transaction is currently awaiting approval fromcompetition authorities and other relevant regulatory bodies. While specifictimelines have not been disclosed, such acquisitions typically undergo severalmonths of regulatory review before completion. Both companies continue tooperate independently during this period, with integration planning likelyunderway to ensure a smooth transition once approvals are secured.
Key Takeaways:
• CMA CGM's logistics subsidiary CEVA Logistics has signeda $440 million agreement to acquire Borusan Tedarik, significantly expandingits presence in Turkey with nearly double the warehousing capacity and a 25%increase in ocean shipping capabilities
• The acquisition includes Borusan Tedarik's operations inTurkey as well as subsidiaries in Germany, Bulgaria, Hong Kong, and China,reflecting CMA CGM's strategy of building a comprehensive global logisticsnetwork through strategic acquisitions
• Following the acquisition, CEVA's air freight businesswill rank among the top five in Turkey, while its finished vehicle logisticsoperations will be among the top three in the Turkish domestic market,strengthening its position in key specialized segments
