French delivery group CMA CGM has supplied to purchase the logistics enterprise of billionaire Vincent Bolloré in a deal that might worth it at €5bn, because it extends an acquisition spree after making outsized earnings in the course of the top of the pandemic.

The 2 teams mentioned on Tuesday that they’d now maintain unique negotiations, whereas Bolloré Group added that it had given CMA CGM a deadline of Could 8 to finalise its provide.

A deal would additional slim down the Bolloré Group, which additionally holds the household’s stake in Vivendi and its holdings in Common Music Group. It bought its African ports and logistics operation to MSC Group for €5.1bn in December.

It will even be an indication that billionaire industrialist and company raider Bolloré is reshaping his household’s holdings once more by way of acquisitions and divestments — this time leaving them extra targeted on media and shorn of the ports, transportation and logistics enterprise that he spent many years growing in Africa and elsewhere.

For CMA CGM, which is owned by the billionaire Saadé household, the deal would additional its intention of rising its logistics arm to finally scale back its reliance on the boom-and-bust-prone maritime delivery enterprise that’s nonetheless its largest. Throughout the top of the pandemic the Marseille-based group benefited from sky-high delivery charges that drove document gross sales of $74.50bn and earnings of $24.9bn final 12 months.

Chief government Rodolphe Saadé has mentioned he needs to make use of the money to construct up the logistics enterprise in order that it may well provide providers to multinational clients equivalent to Walmart and Amazon from the manufacturing unit to last-mile supply. CMA CGM has already achieved 4 acquisitions of logistics corporations since 2018, and likewise purchased a minority stake in Air France in 2022 to maneuver into air freight.

Bolloré mentioned on Tuesday that it “will talk in the end on the end result of their discussions”. CMA CGM mentioned: “The negotiations under no circumstances assure an acquisition in the long run.”

Bolloré Group’s shares rose greater than 5 per cent in afternoon buying and selling on Tuesday in Paris.

The transportation and logistics unit, which as soon as included Bolloré Africa Logistics, was as soon as the group’s largest enterprise operation, producing €7.1bn, or roughly a 3rd, of group revenues in 2022.

An individual aware of the matter mentioned the Bolloré Group was contemplating the sale as a result of the logistics enterprise required deep pockets and investments and it was unsure it may sustain with quickly increasing leaders within the sector.

Flush with its pandemic billions, CMA CGM has the means to take a position closely and a deal would vault itself into the highest 5 logistics teams globally, mentioned one other particular person aware of the matter.

Bolloré Group holds a 29 per cent stake in French media group Vivendi, in addition to 18 per cent in Common Music Group, which was spun out in 2021. Vivendi is within the technique of buying Lagardère group, which is able to bolster its holdings in guide publishing and journey retail. Nevertheless, European competitors regulators are nonetheless analyzing the acquisition.

Bolloré Group’s board will meet on Tuesday to vote on a proposal so as to add €0.25 to its share buyback programme priced at €5.75 per share ought to the deal undergo.