COPENHAGEN/MARSEILLE: June 13, 2017. A.P. Møller – Mærsk has confirmed the sale of its Mercosul Line subsidiary to CMA CGM to avoid market dominance issues relating to the pending acquisition of Hamburg Süd.

The transaction, terms of which are not disclosed, is subject to Brazilian regulatory approval and CMA CGM said the earliest it expected to integrate the box line's Brazil cabotage services would be Q4 2017.

Launched in 1996 and acquired by Maersk in 2006, Mercosul Line operates four very modern 2,500 TEU ships in Brazil and South America. The company reported revenues of US$128 million in 2016.

CMA CGM said the proposed acquisition is part of a strategy to develop intra-regional box services with complementary logistics.

"The acquisition of Mercosul represents a milestone in CMA CGM's development strategy in South America," said CMA CGM CEO Rodolphe Saadé. "It is a well-managed company and we will leverage this platform to expand our footprint and service offerings to and from Latin America, seizing opportunities linked to the high growth prospects in this region."

Maersk Line COO Søren Toft added: "Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition. Its dedicated talents are well regarded both internally and externally. CMA CGM is a good fit for Mercosul and we are confident that they will continue to develop the company going forward."