French shipping group CMA CGM will acquire a 48% stake in Santos Brasil, a major Brazilian multi-terminal operator.
The CMA CGM Group announced the signing of a definitive and irrevocable agreement to buy a c.48% stake in Santos Brasil Participações S/A from funds managed by Opportunity.
“I am pleased that the CMA CGM Group has concluded this strategic agreement for the acquisition of Santos Brasil, which operates five terminals in Brazil, including the largest container terminal in the Port of Santos, handling 40% of Brazilian volumes, as well as a logistics company,” confirmed Rodolphe Saadé, CEO of CMA CGM Group.
Closing of the transaction with Opportunity Funds is expected to occur in the first quarter of 2025, subject to regulatory approvals from relevant Brazilian authorities. Following completion of the acquisition, CMA CGM will launch a mandatory tender offer on all other Santos Brasil shares, on same terms, in line with Brazilian market rules.
It is important to note that Santos Brasil manages a portfolio of eight assets on the Brazilian coast, including three container terminals, one vehicle terminal, one liquid bulk terminal and three logistic facilities. These assets are located in the Ports of Santos, Imbituba, Vila do Conde, Itaqui and Sao Paulo.
Over the 12 months ending 30 June 2024, Santos Brasil generated revenues of BRL 2,549 million (US$458 million) and EBITDA of BRL 1,284 million (US$230 million).
Santos Brasil operates the Tecon Santos terminal through a long-term concession agreement until 2047. Tecon Santos is the largest box terminal in South America, with a strategic location in the Port of Santos and benefits from first-class infrastructure. The terminal has a capacity of 2.5 million TEUs and is expected to reach 3 million TEUs in the near future. Additionally, Tecon Sanots has three berth slots enabling to handle 14,000 TEU vessels.
CMA CGM intends to further develop its line calls in the various Brazilian terminals and further improve its offering to Brazilian exporters and importers. To meet global demand, the Marseille-headquartered company said it aims to accelerate investments in Santos Brasil terminals to increase the combined capacity in the coming years, in line with the commitments undertaken by Santos Brasil with port authorities.
“These strategic facilities will continue to operate as multi-user terminals under the leadership of the current management team and will continue to focus on improving the quality of their services to satisfy the expectations of their customers,” noted CMA CGM in a release.
It is noteworthy saying that the CMA CGM Group has been operating in Brazil for over 20 years, with currently eight offices and over 10,000 staff members. The company has developed its activities in Brazil organically as well as through the acquisition of Mercosul, a historic shipping line in the region.
