France's CMA CGM acquires GEFCO under special procedure approved by EC

MOSCOW. April 8 (Interfax) - French transportation group CMA CGM has announced that is acquiring almost 100% of French logistics operator GEFCO, 75% of which is owned by Russian Railways (RZD).

"The acquisition has been submitted to competition authorities for approval. However, as part of a special procedure, the European Commission has authorized CMA CGM to acquire the capital of GEFCO immediately, pending the final approval that will take place in the coming months," the company said in a statement on Friday.

GEFCO announced earlier that it planned to buy out RZD's stake in the company. "Today GEFCO's management board made took an unprecedented step to ensure the stability of the company for its clients, partners and employees. Fulfilling its own 'Partners, Unlimited' promise and with the approval of GEFCO's supervisory board, the management board decided to buy out the 75% of shares in the company owned by RZD," GEFCO told Interfax on April 1.

RZD was hit by UK sanctions on March 24. On the same day, Les Echos reported that GEFCO was looking for a buyer for RZD's 75% stake in the company. GEFCO confirmed to Interfax at the time that the company was thinking about changing its ownership structure.

"At present, with the support of the Economy Ministry of France, the group is looking for possible solutions to change the structure of its shareholder capital," GEFCO said on March 24.

RZD bought 75% of GEFCO from PSA Peugeot Citroen (now part of automaker Stellantis) in 2012 for 800 million euros. PSA retained a minority stake, including due to the strategic importance of GEFCO's business for the automaker. RZD's former management and transport officials said the acquisition was part of plans to develop logistics under RZD's development strategy. GEFCO primarily operates in Europe and Africa.