By Bloomberg News

(Bloomberg) — Neptune Orient Lines Ltd. surged to its highest in virtually seven months in Singapore buying and selling after Southeast Asia’s largest container shipper confirmed it’s in unique talks to be acquired by France’s CMA CGM SA.

NOL shares rose by as a lot as 5.4 % to S$1.18 on Monday, their highest intraday stage since April 29. CMA CGM has till Dec. 7 to finish a due diligence assessment and negotiate the definitive agreements for the provide, Neptune Orient stated in an announcement Saturday. The Singapore-based liner is 67 percent- owned by state funding firm Temasek Holdings Pte.

A deal would come at a time international delivery corporations grapple with methods to revive earnings amid a glut of recent vessels, shrinking demand and declining costs. Liners have idled about 5 % of the worldwide fleet, slashed prices, offered property and minimize staff in an try to stem years of losses as sluggish international development and an over-supply of vessels eat into document low delivery charges.

Supply development is predicted to outpace demand for dry-bulk and tanker markets in 2016 and corporations have been trying to find methods to make cash.

©2015 Bloomberg News

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