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French shipping major CMA CGM has completed the acquisition of Brazil’s container shipping line Mercosul Line from Maersk Line.

CMA CGM and Maersk Line announced the deal in June as part of Maersk Line’s move to acquire Hamburg Süd, which Maersk finalized at the end of November.

Namely, the Mercosul transaction was subject to Brazilian regulatory approval and the closing of the Hamburg Süd deal. The company had to change ownership in order to ensure the cabotage sector in Brazil remains competitive.

Namely, Hamburg Süd already has a subsidiary in Brazil, Alianca Navegacao e Logistica, which is a major cabotage carrier along the Brazilian coastline. Keeping Mercosul would have pushed Maersk’s control of South America East Coast’s cabotage to 80 percent.

Today the transfer of ownership between the two companies was completed, marking the closing of the acquisition.

“Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition. It has been a valued brand in our portfolio and we wish the company and its dedicated people the best in the future,” Søren Toft, Chief Operating Officer, A.P. Moller – Maersk, commented.

“The acquisition of Mercosul Line allows CMA CGM to strengthen its service offering in Brazil, and more broadly in South America, especially in cabotage and “door-to-door” services,” CMA CGM said.

Established in 1996, Mercosul Line serves over 12 ports with a fleet of four vessels of 2,500 TEUs.

The company’s network includes nearly 130 people in its offices in Santos, Sao Paulo, Manaus, Recife and Itajai.

The parties have decided not to publicly disclose the price of the sale.