Renault and Volvo have signed a binding agreement to launch a new company where they will initially hold respective 50:50 equity stakes, planning to invest EUR300m ($316.6m) each over the course of the next three years with CMA CGM signing a non-binding letter of intent to join the new company, investing EUR120m.
The creation of the new French company is expected in early 2024.
“The new company is the start-up minded, unmatched combination of the complementary assets of three champions: a leading truck maker, expert in tailored services, a champion of the global supply chains, and a European EV pioneer and [light commercial vehicle] leader. All the ingredients are there to come up with something truly unique,” said Luca de Meo, CEO of Renault Group.
Awash with record profits, Rodophe Saade-led CMA CGM has been dramatically diversifying its business focus over the last couple of years investing in media, logistics firms, airplanes, ropaxes, car carriers, ports, start-ups, and even space propulsion.
At $25bn, CMA CGM’s profits last year were the highest recorded by any French company in history.
