CMA CGM plans to expand operational capacity at Port of Santos

CMA CGM, the global shipping and logistics giant, has assured that Santos Brasil’s operations in the country will be maintained and that its goal is to expand the company’s operational capacity. The French group is now the majority shareholder of Brazil’s largest container terminal operator and the leading player at the Port of Santos, holding 93.07% of the company’s shares.

Through its subsidiary CMA Terminals Atlantic, CMA CGM acquired more than 363.5 million shares of Santos Brasil (42.07% of the capital) in a public tender offer on September 11. With the transaction, the group’s total ownership rose to 93.07%, up from 51%. About 58.4 million shares, or 6.76% of the capital, remain in the market. Shareholders who chose not to sell during the auction may still do so within the next three months at the same price paid by CMA, adjusted by the Selic rate and minus any dividends.

As a result of the acquisition, Santos Brasil has been delisted from the São Paulo Stock Exchange (B3), ceasing public trading of its shares as of last Friday.

Expansion

“The intention is to continue expanding Santos Brasil’s operational capacity and improving productivity. The company will remain an active and visible entity in Brazil under its current brand, which enjoys strong local recognition,” CMA CGM said in a statement to A Tribuna through its France office.

The French group also stated that “Santos Brasil’s activities will remain diversified, including container terminals as well as vehicle, liquid bulk, and general cargo operations across all its active locations. No closures or workforce reductions are planned; on the contrary, we intend to leverage the recognized expertise of its employees.”

CMA CGM reiterated that “the acquisition of Santos Brasil demonstrates our strong confidence in the Brazilian economy and its growth potential.”

Impacts

Emanuel Pessoa, a business law expert, PhD in Economic Law, and professor at China Foreign Affairs University, viewed Santos Brasil’s delisting as a positive move.

“The CMA CGM decision is more strategic and corporate than operational in the short term. It allows Santos Brasil to be free from quarterly stock market pressures and gain greater flexibility for long-term investment. As one of the largest shipping companies in the world, CMA CGM can now align Santos Brasil’s terminal strategy with its global cargo flows,” said Pessoa.

Regarding operations at the Port of Santos, Pessoa noted that no immediate changes are expected, since activities are regulated by Antaq (National Waterway Transport Agency) and the Santos Port Authority (APS), which ensure continuity. “What changes is the potential for vertical integration: CMA can channel more cargo from its fleet to Santos Brasil’s terminals, strengthening competitiveness at the port,” he added.

From an economic standpoint, the specialist anticipates greater investment predictability in expansion and technology, which could potentially improve efficiency at the Port of Santos. “For the market, it means concentration. A major shipping line controlling a key terminal may raise competition concerns, but it can also attract more shipping services linked to CMA’s network,” Pessoa concluded.

Source: A Tribuna 

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