(Reuters) – CMA CGM said on Monday it had acquired about 48 percent of Brazilian logistics company Santos Brasil, giving it access to South America’s largest container terminal, the French shipping giant said in a statement on Monday.
CMA CGM said it wanted to launch a takeover bid for the remaining shares “in the coming months”.
Announced on Sunday by Santos Brasil in a communication to investors, this transaction extends the series of acquisitions carried out by the Marseille group, which is benefiting from the billions earned during the boom in maritime transport in the aftermath of the COVID-19 pandemic.
According to the statement from Santos Brasil, CMA CGM has agreed to pay 6.3 billion reais (1.036 billion euros) to take 47.55% of its shares, purchased from the asset manager Opportunity. This price represents a premium of 20% compared to the closing price on Friday. The French group is financing the operation with its own funds.
The French shipping company, the world’s third largest in maritime transport, stated in its press release that it will work in cooperation with port authorities and supervisory bodies to develop the port of Santos, Brazil’s main port, as well as all the ports in which Santos Brasil operates.
Operating the largest container terminal in Brazil and South America, Tecon Santos, Santos Brasil generated revenues of 2,549 million Brazilian reais (417 million euros).
“A few years ago, I would never have considered putting so much money on the table in Brazil, but I now believe that we must focus on both mature countries and countries that offer real growth prospects,” Rodolphe Saadé said in an interview with the daily Les Echos on Monday.
In a call with journalists on Monday, the head of CMA CGM said he wanted, among other things, to reduce waiting times for ships in the port of Santos, which can reach 10 days.
Rodolphe Saadé also took a position on the ongoing debate on a possible repeal of the significant tax loophole enjoyed by maritime carriers. This loophole “protects European companies” and “gives them the opportunity to continue to develop in the face of Asian competition”, he said, warning against the “disadvantage” that he believes French companies risk suffering compared to European and Asian competitors.
The head of CMA CGM, however, affirmed that his group “will be there” and “will take its share” if the French government puts in place an exceptional contribution on large companies, another subject under debate.
(Report by Gus Trompiz, written by Florence Loève and Mara Vîlcu, edited by Blandine Hénault)
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