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China Shipping and CMA lead race for CP Ships

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  • China Shipping and CMA lead race for CP Ships

    http://news.moneycentral.msn.com/pro...728&ID=5002369

    All Financial Times NewsChina Shipping Group, the country's second-largest ship group, and CMA CGM, the France-based worldwide container shipping line, are leading the bidding for CP Ships, in a deal that could value the Toronto-listed group at more than C$1.8bn (US$1.46bn).

    The move by state-owned China Shipping, which is believed to have seen off rival interest from other Chinese groups, is a sign of the growing desire by the country's larger companies to gain access to global markets through acquisitions.

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    CP Ships, listed in Toronto but based in London, is understood to have taken China Shipping and CMA through to the final round of the sale process and is expected to choose a preferred bidder by the end of next month.

    China Shipping is understood to have seen off early interest from rival Chinese companies China Ocean Shipping Company (COSCO) and Orient Overseas International Limited (OOIL).

    China's leading transport companies have been keen to capitalise on the growing trade with the rest of the world by gaining access to ports and container lines.

    Geneva-based MSC, the world's second-largest container shipping line by capacity, is also understood to have lodged an indicative offer for CP Ships, according to people close to the situation.

    Formerly part of Canadian Pacific Limited, CP Ships is one of the largest container carriers in the North Atlantic, operating about 80vessels.

    The company does business in four major markets transatlantic, Australasia, Asia, and Latin America under seven main brand names, ANZDL, Canada Maritime, Cast, Contship Containerlines, Italia Line, Lykes Lines and TMM Lines, which will be rebranded as CP Ships by the end of 2005.

    The move to acquireCP Ships comes just weeks after Copenhagen-basedAP Moeller-Maersk, whose Maersk Sealand arm is the world's largest container shipping company, offered US$2.8bn to acquire Dutch rival Royal P&O Nedlloyd. This is the industry's biggest transaction to date and has triggered fresh interest among shipping groups in wider consolidation.

    China Shipping and the other Chinese groups declined to comment on Thursday. Morgan Stanley also declined to comment.

    Copyright 2005 Financial Times
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