Billion-Dollar Transaction Could Elevate Port of Santos to Top Global Hub, Say Experts

The acquisition of nearly 48% of Santos Brasil by CMA CGM, the French maritime shipping giant, in a deal involving R$ 6.3 billion in investments announced on Sunday (22), could position the Port of Santos as one of the world’s leading strategic hubs. This is the view of foreign trade experts consulted by A Tribuna, who highlight the significance of the company operating Tecon Santos.

Larry Carvalho, a lawyer specializing in logistics, maritime law, and agribusiness, believes that CMA CGM’s coming into play could be a turning point for the Port of Santos.

“This move has the potential to reduce operating costs and increase the capacity to handle cargo, positively impacting maritime trade and the supply chain. That could help Santos further establish itself as a strategic hub for global trade, especially on routes connecting Latin America with Asia, Europe, and the United States,” he explained.

Arno Gleisner, Director of Foreign Trade at the Chamber of Commerce, Industry, and Services of Brazil (Cisbra), believes the company will likely invest in modernizing and enhancing the terminal’s efficiency.

For him, this “also means jobs and enhanced supply chain activity in the region, boosting healthy competition for users and for the production chain around the port, which will benefit the economy of Santos, São Paulo, and the country as a whole.”

Leandro Lopes, a business and international relations specialist, sees the acquisition as an opportunity to foster greater integration between terminals and CMA CGM’s global shipping routes, enhancing Brazil’s connectivity to international markets.

“Santos will benefit in terms of infrastructure and global expertise, paving the way for a significant increase in cargo throughput and improving competitiveness in foreign trade,” said Lopes.

The President of the Santos Port Authority (APS), Anderson Pomini, celebrated the transaction, commenting that CMA CGM’s decision cements the Port of Santos’ status as a first-class port regarding infrastructure and logistics. “That’s why they decided to invest and partner with APS and other regulatory agencies,” Pomini added.

Tecon Santos

Located on the Left Bank of the Port of Santos in Guarujá, Tecon Santos operates over an area of 600,000 square meters. The lease contract is valid until 2047, and the terminal has a capacity of 2.5 million TEUs, expandable to 3 million TEUs, with berths for three ships of up to 14,000 TEUs simultaneously.

Please refer to the chart below to discover the top ten terminals in Brazil in terms of container throughput, as well as Tecon Santos’ standing on this list. The information was derived from DataLiner, Datamar’s top-notch maritime intelligence service, and refers exclusively to long-haul operations, with transshipment, cabotage, docking clearance, or transits not included.

Top Container Terminals | Jan-Jul 2024 | TEUs

Source: DataLiner (click here to request a demo)

R$ 6.3 Billion Acquisition

Santos Brasil disclosed on Sunday (22) a material fact detailing the share purchase agreement. CMA CGM will acquire 47.6% of the company for R$6.3 billion, and the global maritime transport giant will launch a public offer for the remaining shares.

According to the agreement, CMA CGM will acquire around 215 million shares and nearly 40 million global depositary receipts of Santos Brasil, held by Brazilian investment firm Opportunity, at R$15.30 each. This price reflects a 20% premium over the closing price of R$12.71 for Santos Brasil shares on Friday.

CMA CGM will make the public acquisition offer within 30 days after the purchase is finalized, which still requires approval from the Administrative Council for Economic Defense (Cade) and the National Waterway Transportation Agency (Antaq). The deal is expected to be completed in the first quarter of 2025.

“I am pleased that CMA CGM Group has reached this strategic agreement to acquire Santos Brasil, which operates five terminals in Brazil, including the largest container terminal at the Port of Santos, accounting for 40% of Brazil’s cargo volume, and a logistics company. This significant investment reflects our commitment to strengthening our partnership with Brazil and supporting its growth in the years ahead,” said Rodolphe Saadé, CEO of CMA CGM Group.

Contacted by A Tribuna, Santos Brasil stated on Monday (23) that it would not comment on the deal or future investments in Tecon Santos at this time.

Source: A Tribuna

Click here to read the original reporting: https://www.atribuna.com.br/noticias/portomar/transac-o-bilionaria-pode-colocar-o-porto-de-santos-entre-os-principais-hubs-do-mundo-dizem-especialistas-1.435201

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