This week, Swiss 3PL CEVA Logistics inked a new contract with longtime partner, Brazil-based Fiat Chrysler Automotive (FCA), to manage the company’s aftermarket operations at its Betim facility until 2022. At the same time, CEVA completed its deal with French maritime shipping giant, CMA CGM Group, giving the latter nearly 98% control of the logistics company.
CEVA Logistics said it plans to employ a team of more than 450 people to manage FCA’s outbound transportation and warehousing, which encompasses its business in southern Brazil.
Daniel Cortazzo, senior manager of business development for automotive and industrial sectors at CEVA in Brazil, said the renewal “reinforces our presence in aftermarket solutions” within the automotive sector.
The multinational automaker FCA encompasses brands including Chrysler, Dodge, Fiat and Jeep, and comprises about 18% of the total national vehicles market in Brazil.
CEVA has been increasing its foothold in the Brazilian market via its logistics hub in São Paulo. In October, it expanded its partnership with a Brazil-based retailer to manage its warehousing and distribution operations.
Regarding the CMA CGM takeover, the deal, which was finalized on April 10, will create an operational center in Marseilles to consolidate the management teams of the two entities and “accelerate CEVA Logistics’ return to profit,” read a CMA CGM statement.
The merger occurred after a public tender offer amounting to US$1.65 billion was made by CMA CGM on Feb. 12. After being agreed upon by CEVA, the tendered CEVA shares are now scheduled to be transferred by next Tuesday, whereupon the French conglomerate will delist CEVA from the Zurich Stock Exchange.
According to CMA CGM chairman and CEO Rodolphe Saadé, the addition of logistics services from CEVA will expand the company size to 110,000 people in 160 countries, and generate revenues of $30 billion per year.