CMA CGM to acquire 48% stake in Santos Brasil

The CMA CGM Group has announced the signing of an agreement to acquire a 48% stake in Santos Brasil Participações S/A, a Brazilian multi-terminal operator, from funds managed by Opportunity Funds.

Santos Brasil manages a portfolio of eight assets on the Brazilian coast, including three container terminals, one Ro-Ro terminal, one liquid bulk terminal and three logistics facilities. The assets are located in the Ports of Santos, Imbituba, Vila do Conde, Itaqui and Sao Paulo.

Over the 12 months ending June 30, 2024, the company generated BRL2.55b (US$458m) of revenues and BRL1.28b (US$230m) of EBITDA.

Tecon Santos terminal is the largest container terminal in South America, with a strategic location in the Port of Santos and benefits from infrastructure including:

• A long-term concession agreement until 2047;
• A capacity of 2.5m TEU, expandable to 3.0m in the near future;
• 3 berth slots enabling to handle 14,000 TEU ships.

With the acquisition of Santos Brasil, “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.”

According to CMA CGM, the company “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.”

CMA CGM is also committed to pursuing the decarbonisation plan already initiated by Santos Brasil.

“I am pleased that the CMA CGM Group has concluded this strategic agreement for the acquisition of Santos Brasil, which operates five terminals in Brazil, including the largest container terminal in the Port of Santos, handling 40% of Brazilian volumes, as well as a logistics company. This significant investment reflects our commitment to strengthening our partnership with Brazil and supporting its growth in the coming years”, said Rodolphe Saadé, CEO of CMA CGM Group.

The CMA CGM Group has been operating in Brazil for over 20 years, with currently eight 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 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.

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 the completion of the acquisition, CMA CGM will launch a mandatory tender offer on all other Santos Brasil shares, on the same terms, in line with Brazilian market rules.