SEOUL -- CMA CGM S.A., a French shipping group, became a joint venture partner to operate a terminal in Algeciras, Spain, by purchasing a stake from HMM, a major creditor-controlled shipping company in South Korea. The two companies will set up a joint venture with the goal of starting operations in the fourth quarter.
HMM, formerly known as Hyundai Merchant Marine, has signed a contract with CMA CGM to sell shares in Total Terminal International Algeciras (TTIA) S.A.U. in the port of Algeciras Bay, a strategic point in the Strait of Gibraltar. Financial terms were not disclosed.
The French group became the second shareholder of TTIA, while HMM will maintain a 50 percent plus one share through a special purpose corporation, keeping its largest shareholder status. The deal will help HMM secure the stable operation of TTIA, a bridgehead for expanding operations in the Mediterranean and African regions.
In 2017, HMM purchased a 100 percent stake in TTIA from Hanjin Shipping, which used to be South Korea's largest container carrier. HMM has tried to enhance its international competitiveness and profitability since Hanjin terminated its 40-year-long business in February 2017, when South Korean shippers were in trouble due to falling freight rates and a protracted slump in the global economy.
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