CMA CGM has reached an agreement to take over the largest container terminal in South America.
The French liner giant will acquire 48% of terminal company Santos Brasil in a deal worth BRL 6.3bn ($1.14bn), according to a statement to the Brazilian Securities & Exchange Commission.
CMA CGM subsidiaries CMA Terminals Atlantic and CMA Terminals will acquire the shares in cash from Brazilian fund manager Opportunity Funds for BRL $15.30 per share, in cash.
That is a 20% premium over the BRL 12.71 closing price of Santos Brasil shares on Friday.
The carrier will later make a mandatory public offer to acquire all of the remaining shares of the Brazilian-listed company, for the same price per share.
Santos is the largest terminal operator in Brazil. It owns three container terminals there, as well as a vehicles and a liquid bulk terminal and three logistics facilities, CMA CGM said.
Its flagship asset is the Tecon Santos terminal, Brazil’s biggest container handler.
CMA CGM chief executive Rodolphe Saade said: “This significant investment reflects our commitment to strengthening our partnership with Brazil and supporting its growth in the coming years.”
Closing of the transaction is expected to occur in the first quarter of 2025, subject to Brazilian regulatory approvals.
Strategic presence
The move is the latest in a series of terminal acquisitions by liner operators, including CMA CGM, which already has stakes in about 60 terminals around the world.
Imports to Santos Brasil’s ports are surging.
The Sao Paulo-based terminal owner reported BRL 171.7m ($31.2m) in net income for the second quarter this year, up 82% year over year. Revenue rose by 39% to BRL 702.8m.
Over the 12 months ending 30 June, the company generated BRL 2.5bn of revenues and BRL 1.28bn of Ebitda.
CMA CGM said the project will massively expand its presence in Brazil, citing the strategic location in the Port of Santos, which is under concession until 2047.
The port has three berth slots enabling it to handle 14,000-teu ships and is undertaking an ambitious $520m expansion to increase annual capacity to 3m teu.
The facilities will continue to operate as multi-user terminals under the current management team, CMA CGM said.
CMA CGM has a strong presence in Brazil, where it has grown its operations organically since the acquisition of cabotage operator Mercosul Line in 2017.
Its CEVA Logistics arm employs 7,500 people in Brazil.
“This strategic move will enable CMA CGM to offer seamless connections between Europe, Asia, North America, Caribbean solidifying Brazil’s position as a key hub in the group’s worldwide operations and reinforcing synergies with Mercosul Line affiliate,” CMA CGM noted.
It is also deploying LNG-powered vessels to Brazil and operates a long-haul service with partners from Asia to Santos.
