French shipping giant CMA CGM buys Brazil's Santos port operator

Recently, French shipping giant CMA CGM announced that it will acquire a 47.6% stake in Brazilian port operator Santos Brasil for a transaction value of 6.3 billion reais (approximately US $1.2 billion) 1. The move marks an important expansion for CMA CGM in the South American market and plans to launch a general offer for the remaining shares following the completion of the initial acquisition.

Introduction to Santos Brazil
Santos Brazil is one of Brazil's leading port operators with several strategic port facilities under its umbrella. Its main ports of operation include:
Container Santos): Located in the state of São Paulo, it is the largest Container in South America.
Container Imbituba: Located in the state of Santa Catarina.
Tecon Vila do Conde Container): Located in the state of Para.
Santos Vehicle Terminal: Specializes in handling automobile shipping.
Imbituba General Cargo Terminal: Handling all kinds of general cargo.
Itaki Liquid Bulk Terminal: located in the state of Maranhão and handles liquid bulk cargo.

Acquisition Details
Under the agreement, CMA CGM will purchase approximately 215 million Santos Brazil shares and nearly 40 million Global Depositary Receipts (GDRs) at R $15.30 per share, which represents a 20% premium to the closing price of Santos Brazil shares last Friday1. In addition, CMA CGM undertakes to launch a general offer of equivalent price to the remaining shareholders within 30 days of completion of the initial share purchase.

Regulatory Approvals
The acquisition remains subject to approval from Brazil's antitrust agency CADE and water transport regulator ANTAQ1. Once approved, CMA CGM will further strengthen its position in the South American market and upgrade its global port operational capabilities.

Background Introduction
CMA CGM: Located in Marseille, French, Headquarters is one of the world's leading shipping and logistics companies, operating more than 500 vessels covering more than 160 Country and territories worldwide.
Port of Santos: Located in the state of São Paulo, Brazil, it is the largest port in South America and one of Brazil's most important trade hubs, with an annual throughput of more than 100 million tons.