CMA CGM to acquire a c.48% stake in Santos Brasil
The CMA CGM Group has announced the signing of a definitive and irrevocable agreement to acquire a c.48% stake in Santos Brasil Participações S/A, a prominent listed Brazilian multi-terminal operator, from funds managed by Opportunity.
Santos Brasil manages a portfolio of 8 assets on the Brazilian coast, including 3 Container Terminals, 1 Vehicle Terminal, 1 Liquid Bulk Terminal and 3 Logistic Facilities. These assets are located in the Ports of Santos, Imbituba, Vila do Conde, Itaqui and in Sao Paulo.
Over the 12 months ending June 30, 2024, the company generated BRL 2,549m of revenues (USD 458m) and BRL 1,284m of EBITDA (USD 230m).
Tecon Santos terminal is the largest container terminal in South America, with a strategic location in the Port of Santos and benefits from first-class infrastructure:
A long-term concession agreement until 2047.
A capacity of 2.5m TEUs, expandable to 3.0m in the near future.
3 berth slots enabling to handle 14,000 TEUs ships.
Most efficient terminal in the Port of Santos with excellent berth productivity.
The acquisition of Santos Brasil marks another significant milestone in CMA CGM’s global port development strategy, reinforcing its position as a leading global multi-user terminal operator with investments in approximately 60 terminals worldwide.
CMA CGM intends to further develop its line calls in the various Brazilian terminals and further improve its offering to Brazilian exporters and importers, thereby responding to increasing demand and better addressing consumer needs.
The expansion potential of Tecon Santos terminal capacity and its operational excellence will be a useful support to enhance service quality. To meet global demand, CMA CGM intends to accelerate investments in Santos Brasil terminals, with an objective 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.
The CMA CGM Group has been operating in Brazil for over 20 years, with currently 8 offices and over 10 000 staff members. The Group has developed its activities in Brazil organically as well as through the acquisition of Mercosul, a historic shipping line in the region.
Part of the CMA CGM Group since 2017, Mercosul Line is, today, key to the Group's operating strategy in Brazil, with coastal shipping and intermodal solutions. CMA CGM and Mercosul Lines operate 10 weekly mainline services at 14 ports in the country, connecting major global destinations.
Additionally, CEVA Logistics, CMA CGM’s logistics arm offers the most differentiated door-to-door solutions combining freight forwarding and contract logistics, with 530,000 sqm of warehouses on 36 sites. CEVA Logistics currently employs 7,500 people in Brazil.
This strategic move will enable CMA CGM to offer seamless connections between Europe, Asia, North America, Caribbean solidifying Brazil's position as a key hub in the group’s worldwide operations and reinforcing synergies with MERCOSUL Line affiliate.
CMA CGM, is today deploying liquefied natural gas (LNG)-powered vessels to Brazil, marking a major step in its commitment to more sustainable and environmentally friendly maritime transport.
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.
Led by Rodolphe Saadé, the CMA CGM Group is a global leader in sea, land, air, and logistics solutions. CMA CGM is also diversifying into the media sector.
As the third-largest global container shipping company in terms of capacity, CMA CGM serves over 400 ports across five continents, supported by a fleet of more than 620 vessels.
Through its subsidiary, CEVA Logistics, the Group is one of the top five global logistics players, managing over 11 million square meters of warehouse space worldwide.
CMA Media, a subsidiary of CMA CGM and the third-largest private media group in France, includes RMC-BFM and a press division that brings together renowned titles such as La Provence, Corse Matin, La Tribune, and La Tribune Dimanche.
Operating in 160 countries, the Group employs 160,000 people globally, including 20,000 in France, with nearly 6,000 based in Marseille, where its headquarters are located.
