UPDATE: April 10, 2018: CMA CGM announced the close of the public tender offer Wednesday. The ocean carrier now holds 97.89% of CEVA's outstanding shares and this "friendly bid" is complete. 

Dive Brief:

• CMA CGM has launched a public tender offer for the approximately two-thirds of CEVA Logistics' shares it does not already control, according to a company press release. The tender offer would add up to a $1.65 billion deal, reported the Wall Street Journal. 
• The takeover would result in CMA CGM becoming a 100,000-employee company with more than $30 billion in revenue, according to the ocean carrier's CEO Rodolphe Saadé. The European Commission approved the merger this week, saying it does not raise competition concerns.
• CMA CGM began buying shares of CEVA last year when it said its goal was to increase its footprint in the logistics sector. CMA CGM says the board of CEVA Logistics AG "is fully aligned with this friendly offer."

Dive Insight:

This deal comes at a time when ocean carriers are looking to other parts of the supply chain to increase revenue. Though CMA CGM posted an uptick in revenue in its most recent earnings report, ocean carriers have suffered from low freight rates and overcapacity since about 2015. And looming International Maritime Organization sulfur regulations and tariffs make the business' future even more uncertain. 

This deal with CEVA will allow CMA CGM to create "economies of scale from combining" the two businesses, it noted on its November earnings. "By developing a logistics offering to complement our maritime activity, we will be able to propose a full ‘end-to-end’ service to our customers," Saadé said in a statement. 

CMA CGM is not the only ocean freight company turning to other parts of the supply chain to increase cash flow. Maersk also announced this week its plans to acquire the customs broker Vandegrift.