The French shipping company CMA CGM has partnered with U.S. investment group Stonepeak to form a joint-venture valued at almost $10 billion. This venture will 'operate and develop port terminals in the United States, among others,' the companies announced on Wednesday. CMA CGM is the third largest container shipping company in the world. Last year, it announced plans to invest 20 billion dollars in the United States. This earned praise from President Donald Trump, who has prioritized reviving U.S. shipbuilding.

The firms announced that under the joint venture agreement, Stonepeak would invest $2.4 billion in order to obtain a 25% stake in the terminal, and CMA CGM would?fold in the 10 terminals they already control, including those in New York City and Los Angeles.

Stonepeak could provide an additional $3.6 billion for future terminal projects. CMA CGM will, on the other hand, use the $2.4 billion proceeds of the transaction to invest into the growth?of their core businesses?, according to the statement.

In a statement, Rodolphe Saade said that the creation of United Ports LLC is an important step for the development of CMA CGM's terminal activities both in the United States as well as globally.

Wall Street Journal reported that the joint venture was expected to be completed in?the latter half of this calendar year.

Terminals in Spain, Brazil and India are also included.

CMA CGM, like its rivals in the shipping industry, has made a significant investment in port terminals. This is to improve its access to important routes and reduce its reliance on unstable earnings from ocean transport. Privately controlled by the Saade Family, the Marseille-based group has expressed an interest in acquiring CK Hutchison ports. Hong Kong's conglomerate is proposing to sell ports, amid tensions between Washington, Beijing and control of trade routes including the Panama Canal.

Stonepeak, based in New York, manages around $80 billion with an emphasis on infrastructure.

(source: Reuters)