French shipping giant CMA CGM plans to launch a full takeover bid for port terminal operator Santos Brasil after it agreed to buy a 48% stake in the company, it said on Monday as it further expands its grip on global shipping infrastructure.
After cashing in billions of windfall profits on the back of spiralling container prices during the COVID-19 pandemic, the unlisted shipping giant has gone on a shopping spree with major investments in sectors including logistics, artificial intelligence and media.
According to a Brazilian regulatory filing, CMA CGM paid 6.3 billion reais ($1.2 billion) for the stake.
"This significant investment reflects our commitment to strengthening our partnership with Brazil and supporting its growth in the coming years," CMA CGM Chief Executive Rodolphe Saade said in a statement.
Santos owns three container terminals in Brazil as well as a vehicle and a liquid bulk terminal and three logistics facilities, CMA CGM said. Its assets include the Tecon Santos terminal, Brazil's largest container handler.
Under the agreement, CMA CGM would buy some 215 million shares and nearly 40 million Global Depositary Receipts of Santos Brasil STBP3.SA from Brazilian asset manager Opportunity for 15.30 reais each, according to the filing.
The price represents a 20% premium over the 12.71 reais closing price of Santos Brasil shares on Friday. The initial deal is expected to close in early 2025.
CMA CGM would file for the tender offer to take over the firm within 30 days after the closing of the stake purchase, which still requires approval from Brazil's antitrust body CADE and waterborne transport regulator ANTAQ.
($1 = 5.5098 reais)
(Reuters - Reporting by Andre Romani and Tassilo Hummel; Editing by Jamie Freed)