CMA CGM acquires 48% stake in Santos Brasil, plans takeover bid

27 Sep, 2024

CMA CGM acquires 48% stake in Santos Brasil, plans takeover bid

French shipping giant CMA CGM has announced plans to launch a full takeover bid for Brazilian port terminal operator Santos Brasil after acquiring a 48% stake in the company. The deal, valued at 6.3 billion reais ($1.2 billion), marks a significant expansion of CMA CGM's presence in global shipping infrastructure. This move follows CMA CGM’s recent investments in logistics, artificial intelligence, and media, supported by its substantial profits during the COVID-19 pandemic.

The acquisition includes Santos Brasil's assets, such as three container terminals, a vehicle and liquid bulk terminal, and three logistics facilities, including Tecon Santos, Brazil's largest container handler. CMA CGM CEO Rodolphe Saade expressed commitment to strengthening the company's partnership with Brazil, supporting its growth in the coming years.

The agreement involves purchasing around 215 million shares and nearly 40 million Global Depositary Receipts from Brazilian asset manager Opportunity at 15.30 reais per share, representing a 20% premium over Santos Brasil's closing share price. The deal is expected to be finalized in early 2025, after which CMA CGM will file for a tender offer to acquire the remaining shares.

The transaction is pending approval from Brazil’s antitrust body CADE and waterborne transport regulator ANTAQ.