A.P. Moeller-Maersk to Sell Refrigeration Businesses to China's CIMC for $1.08 Billion

   By P.R. Venkat 
 

Denmark's A.P. Moeller-Maersk AS plans to sell its refrigerated containers manufacturing and refrigeration businesses to China International Marine Containers (Group) Co. for $1.08 billion.

CIMC is buying the China and Denmark units of the Nasdaq-listed company which operates the two companies under Maersk Container Industry Qingdao Ltd. and Maersk Container Industry A/S respectively, CIMC said Tuesday.

The acquisition will allow CIMC to boost its refrigeration technology of marine refrigerators and enhance capabilities in the field of cold-chain equipment, the company said.

The all-cash transaction will be funded by CIMC's own funds and through financing that is expected to slightly increase the company's debt-to-asset ratio, it said.

"In the long run, it provides the group with the possibility of extending the refrigeration technology of marine cold equipment to other logistics equipment of the Group, such as refrigerated cars and mobile cold storage," CIMC said.

Maersk is the world's largest container shipping line by capacity. Its MCI Denmark unit reported revenue of 3.78 billion Danish Krone ($594.5 million), while MCI China had revenue of 3.23 billion yuan ($500.2 million) in the year 2020.

Write to P.R. Venkat at [e-mail]

(END) Dow Jones Newswires

September 27, 2021 21:08 ET (01:08 GMT)

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