French rail operator SNCF will offer €600 million to buy full control of Geodis and form one ofEurope’s largest freight logistics groups, including a leading express business in France. SNCF
already holds 42.37% of Geodis’ share capital and 45.79% of voting rights.SNCF plans to combine Geodis, with 2007 revenues of €4.8 billion, its rail freight divisionand several smaller transport subsidiaries, into a new freight logistics group. The new company, tobe headed by Geodis CEO Pierre Blayau, would have 2008 revenues of some €8 billion and about 50,000employees.
The new company would include Geodis Calberson, one of the leading express and parcelsoperators in France, and a member of the NetExpress Europe network. Geodis Calberson is also FedEx’s GSP partner for collection and distribution across most of France.
Under the “friendly” offer, SNCF said it plans to make a cash offer of €135 per Geodis share,which represents a 79% premium based on the weighted average price of the Geodis share during March2008. The total offer, which values Geodis at about €1.1 billion, is worth about €600 million,according to French media.
SNCF president Guillaume Pepy declared: “With the agreement of our shareholder, the state, wehave decided to create a coherent group in the sector of logistics and freight transport. It is aquestion for us of setting up a European and worldwide platform for consolidation.”
With Geodis, SNCF would be able to offer customers a complete range of multi-modal andinternational solutions covering rail-, road-, air- and sea-based transport, he added. Pepy wascited by French media as saying the new company would rank number four in Europe behind DeutschePost/DHL, Deutsche Bahn/Schenker and Kühne & Nagel.
The Geodis board has commissioned an independent report and will then decide whether torecommend the offer.
