CMA CGM announced today it had signed an agreement with EQT Infrastructure and its partner P5 Infrastructure, under which EQT will acquire a 90-percent interest in the Global Gateway South (GGS) terminal in the port of Los Angeles for $875 million.

Following the completion of the transaction, CMA CGM will remain a minority shareholder holding 10 percent of the GGS terminal. CMA CGM took over the terminal as part of its acquisition of Neptune Orient Lines (NOL), which closed a year ago.

The terminal will remain an important part of our industry leading logistics network,” said Farid T. Salem, executive officer of CMA CGM, “and will have an opportunity to grow alongside CMA CGM.”

CMA CGM will receive a cash consideration of $817 million to be paid at closing. Transaction terms also provide for CMA CGM to receive additional deferred, contingent cash consideration depending on GGS’ future operating and financial performance.

CMA CGM and its subsidiaries entered into a long-term industrial partnership and utilization agreement with EQT Infrastructure and P5, allowing the carrier to remain a major user of the terminal with preferential conditions.

The disposal of GGS enables CMA CGM to complete the financial deleveraging plan communicated in December 2015 upon announcement of the NOL acquisition. The transaction is in line with CMA CGM’s strategy to focus on its shipping business while securing its operations through shared ownership of key terminals. CMA CGM is the third largest container carrier in the world, after Maersk and Mediterranean Shipping. It operates 450 vessels that call at more than 400 ports in the world, across five continents.

Closing of the transaction is subject to anti-trust and regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS), and is expected to occur by end of 2017.