CMA CGM Strategic Investments in Brazil, Acquisition Approximately 48% stake in Santos Brasil

French shipping giant CMA CGM Group recently announced that it will acquire approximately 48% of the shares of Brazilian company Santos Brasil. This strategic investment aims to strengthen CMA CGM's presence in Brazil, specifically at the five terminals operated at Santos Brasil, including the largest container terminal in South America-Tecon Santos. Tecon Santos handles 40% of Brazil's containerized cargo volume and is one of the most important ports in the country.

Santos Brasil's operational overview

Santos Brasil operates eight major assets in the Brazilian coastal region, including container terminals, liquid bulk terminals and vehicle terminals, among others. The assets are located in the ports of Santos, Imbituba, Vila do Conde and Itaqui, among others, and cover the major port cities in Brazil. Not only does Santos Brasil's business generate substantial revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) for the company, it also holds a significant position in the port operations in Brazil.

CMA CGM's Operational Plan

CMA CGM plans to further enhance the operational capabilities and service quality of these terminals after the acquisition is completed. Specific measures include increasing the processing capacity of the terminal, optimizing operational processes and improving customer service levels. In addition, CMA CGM will continue to advance its decarbonization strategy and work to reduce the environmental impact of port operations.

Transaction Details and Future Outlook

The deal is expected to close in the first quarter of 2025, subject to relevant regulatory approvals. Following the completion of the transaction, CMA CGM will launch a mandatory offer for the remaining shares of Santos Brasil. This move not only consolidates CMA CGM's market position in Brazil, but also reinforces its goal of integrating Brazil as an important hub for global operations.

With this acquisition, CMA CGM not only expands its business map in South America, but also demonstrates its leadership position in port operations worldwide. In the future, CMA CGM will continue to work closely with the Brazilian Port Authority and other regulatory agencies to promote the development of Santos Port and other ports, further enhancing Brazil's importance in the global shipping network.