CMA CGM acquires 48% stake in Brazil port terminal operator Santos Brasil
23 Sep 2024
French shipping giant CMA CGM has acquired 48 per cent stake in Brazilian port terminal operator Santos Brasil Participacoes, for about $1.15bn, ahead of taking full control of Brazil’s largest container terminal operator.
Santos Brasil is a multi-terminal operator in Brazil, providing container, liquid, and vehicle handling and logistics services across the country. It operates 8 strategic assets in the country, including South America’s largest container terminal in Port Santos.
In addition Santos Brasil has three logistic facilities located in the Ports of Santos, Imbituba, Vila do Conde, Itaqui and Sao Paulo.
Santos Brasil’s flagship asset is the container terminal Tecon Santos in the state of Sao Paulo.
The acquisition of Santos Brasil will help CMA CGM expand its presence in Brazil while cementing its position as a global container service provider.
CMA CGM plans to take 100 per cent stake in Santos Brasil through a public offer for the remaining shares after the closure of the initial transaction, which is expected in the first quarter of 2025, subject to regulatory clearances.
Further, CMA CGM has committed itself to support Santos Brasil’s capacity expansion and enhancement of service quality while also promoting personal and professional growth of employees.
Marseille-based CMA CGM has been operating in Brazil for over 20 years. The group had, in 2017, acquired Brazilian shipping company Mercosul, which currently operates 10 weekly services at 14 ports in the country.Meanwhile, CMA CGM has called for status quo in tonnage tax proposed by politicians belonging to the French government.
CEO Rodolphe Saade said the company is ready to contribute to any windfall tax that the new French government may impose, but is opposed to a change in the tonnage tax regime.
