CMA CGM Agrees to Buy Brazil’s Largest Terminal and Logistics Company
In a move designed to strengthen its position and Brazil and grow its South American operations, CMA CGM agreed to acquire 48 percent of Santos Brasil the largest terminal operator in the country and South America, and launch a mandatory offer for the remainder of the shares. The French shipping and logistics giant follows Maersk and MSC Mediterranean Shipping which are already expanding in Santos as well as DP World which is investing in the port.
CMA CGM agreed to acquire the 48 percent state for $1.13 billion from funds managed by Opportunity, one of the first and largest independent asset management companies in Brazil. The company has been the lead investor in the terminal operator since 1997. Under the security laws, after closing the transaction, CMA CGM will be required to extend the same offer to the additional shareholders. The company reports its intention to have 100 percent ownership of the company. The offer is a 20 percent premium to the current price of the stock.
“This significant investment reflects our commitment to strengthening our partnership in Brazil and supporting its growth in the coming years,” said Rodolphe Saade, CEO of CMA CGM Group. During a briefing, he called Brazil fast-growing and a significant opportunity.
The company operates five terminals and a total of eight assets, including the largest container terminal in Brazil and South America. The Tecon Santos Terminal in Santos currently has a capacity of 2.5 million TEU and will be expanded to 3 million TEU. It can dock three 14,000 TEU vessels simultaneously.
According to CMA CGM, the terminal handles 40 percent of Brazil’s overall container volume. They are also calling it the most efficient terminal in the Port of Santos.
The company has a total of three container terminals and one each vehicle and liquid bulk terminal. It also operates three logistics facilities with locations in the Port of Santos, Imbituba, Vila do Conde, Itaqui, and San Paulo.
The acquisition expands CMA CGM’s 20-year presence in Brazil and is keeping with the strategy to grow terminal operations and the logistics segments of the business. CMA CGM said it will support the development of Santos and the other ports and will integrate the operations with its group including CEVA Logistics.
The move comes as Santos has been experiencing strong growth. MSC and Maersk had been fighting local opposition to win the right to expand their joint venture for the port’s second large terminal operation and in December 2023 announced the expansion agreement. DP World took control of another terminal and in 2019 the Philippines terminal company ICTSI acquired another terminal in Santos.
CMA CGM will require regulatory approval for the deal. It is targeting closing the acquisition in the first quarter of 2025.