France’s state-owned transport group SNCF is weighing whether to sell a minority stake in its Rail Logistics Europe business, according to reporting by Bloomberg that cites people familiar with the matter.
Those sources say SNCF has appointed Lazard Inc. to provide advisory services on the possible transaction. The engagement suggests SNCF is moving toward a formal process to assess demand and structure for a sale, although no final decisions have been made.
People briefed on the situation told Bloomberg the rail freight logistics and transport arm could be valued at up to 800 million, a figure that also appears in the discussions around the potential divestment. The euro-denominated valuation was accompanied by a U.S. dollar equivalent of $941 million in the reporting.
Several industry competitors have been named as potential bidders in the conversations, with CMA CGM SA, AP Moller-Maersk A/S and DSV A/S cited by the sources. The reporting indicates these companies may have an appetite for assets that expand their rail and logistics footprints, though it does not assert any formal offers have been made.
Negotiations are ongoing and SNCF has not reached a final decision on the size of the stake it would put up for sale, the people said. That means the scope and timing of any transaction remain uncertain at this stage.
Clear summary
- SNCF is considering selling a stake in Rail Logistics Europe and has hired Lazard as adviser.
- The unit could be valued at up to 800 million ($941 million) in potential transaction discussions.
- Competitors named as potential interested parties include CMA CGM SA, AP Moller-Maersk A/S and DSV A/S; no final decisions have been made on stake size.
Context and sectors impacted
- Primary sectors affected: rail freight, logistics and transport services.
- Market participants watching the process will include rail operators, global logistics providers and investors focused on transportation assets.
Risks and uncertainties
- Discussions are ongoing and no final decision has been taken on the size of the stake to be sold - outcome and timing are therefore uncertain.
- Interest from named competitors does not equate to formal bids; potential buyer participation remains unconfirmed.