French shipping company CMA CGM has signed an agreement to sell 90% of its equity interest in the Global Gateway South (GGS) terminal in Los Angeles to EQT Infrastructure III and its partner P5 Infrastructure for a total of $875m, including a cash sum of $817m.

The deal will see CMA CGM continue to hold 10% shareholding interest of the GGS terminal, which it purchased last year as part of Neptune Orient Lines (NOL).

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CMA CGM executive officer Farid 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.”

“Throughout the sales process, EQT Infrastructure and P5 expertise have focused on growth in addition to a responsible, hands-on ownership approach.”

The sale agreement also entitles the company to receive additional deferred, contingent cash consideration, which will be based on GGS’ future operating and financial performances.

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GGS divestment is expected to enable CMA CGM to complete its financial deleveraging plan, which was initially communicated in December 2015 following the acqusiition of NOL.

CMA CGM currently intends to focus on its shipping business and ensure smooth operations through shared ownership of key terminals.

The transaction is subject to anti-trust and regulatory approvals such as clearance from the Committee on Foreign Investment in the US (CFIUS). It is expected to be completed by the end of this year.

BNP Paribas and HSBC are acting as the financial advisors for CMA CGM throughout the transaction, while Willkie Farr & Gallagher is providing legal assistance.