French shipping major CMA CGM has signed an agreement with EQT Infrastructure III and its partner P5 Infrastructure for the sale of 90% stake in the Global Gateway South terminal in Los Angeles, US, for $875m million.

The transaction is subject to anti-trust and regulatory approvals.

After the transaction, CMA CGM will retain a 10% stake in GGS terminal. CMA CGM had acquired the GGS terminal last year as part of Neptune Orient Lines (NOL). It will continue to be a major user of the terminal with preferential conditions.

Under the terms of the agreement, CMA CGM will receive cash consideration of $817m, to be paid at closing. The group will also receive additional deferred, contingent cash consideration, depending on GGS’ future operating and financial performance.

While BNP Paribas and HSBC acted as financial advisors, Willkie Farr & Gallagher acted as legal advisor to CMA CGM in the transaction.

The sale of GGS terminal will allow CMA CGM to complete the financial deleveraging plan, which was announced after NOL acquisition.

The transaction will also enable CMA CGM to focus on its shipping business, while securing its operations through shared ownership of key terminals.

CMA CGM executive officer Farid T Salem said: “We are very pleased to partner with EQT Infrastructure. Together, we will develop GGS into a world-class terminal company. The terminal will remain an important part of our industry leading logistics network, and will have an opportunity to grow alongside CMA CGM.

“Throughout the sales process, EQT Infrastructure and P5 expertise have focused on growth in addition to a responsible, hands-on ownership approach, which we consider highly beneficial to our future partnership.”