China Merchants Port Holdings Company Limited (CMPort) said that the Company's transaction regarding the acquisition of Paranaguá Container Terminal (TCP) in Brazil is completed. The acquisition is the biggest merger and acquisition so far in Brazilian and Latin American port sector.
It is not only the first investment of CMPort in Latin America, but also the first M&A in mature port assets overseas with controlling stake. Since then, TCP has officially become a subsidiary of CMPort, which is a gesture of the Company's overseas port network expansion from Asia, Africa, Europe and North America to Latin America, achieving a full coverage in five continents and taking an important step towards becoming a world's leading comprehensive port service provider. TCP is the 2nd largest container terminal in Brazil, with existing design capacity of 1.5million TEUs and 2.4million TEUs by the end of year 2019. Currently, one out of ten containers in Brazil is handled by TCP. It is also the largest reefer terminal in the country.
On 22nd February, the signing of the letter of intent to close the TCP transaction was held in the Federal Senate of Brazil. Dr. Bai Jingtao, Managing Director of CMPort, signed the LOI on behalf of CMPort. Both sides agreed to try their best to close the transaction on 23rd February. This significant moment was under the witness of Mr. Li Jinzhang, Chinese Ambassador to Brazil, Mr. Wellington Fagundes, Senator and Chairman of National Logistics Front of Federal Senate, Mr. Mauricio Quintella, Minister of Transportation Ports and Civil Aviation, Mr.Richardo Barros, Minister of Health, Mr. Marcelo Roque, Mayor of Paranaguá City, Dr. Hu Jianhua, Vice Chairman of CMPort and the Executive Vice President of China Merchants Group Limited ("CMG"), Mr. Luiz Antonio Rodrigues Alves, CEO of TCP and more than 50 fellow Chinese and Brazilian guests. The event has attracted several Chinese central media and Brazil local media to come to interview.
While giving a speech at the ceremony, Mr. Li Jinzhang said, “Today's ceremony definitely represents the perfect opening of Sino-Brazil economic and trade cooperation in 2018. Chairman Xi Jingping once mentioned, CMG is a good enterprise, its investment in Brazil will definitely inject new momentum to both countries in terms of economy and trade. We believe under the support and coordination between China and Brazil, TCP will have a brighter future.”
Dr. Hu Jianhua emphasized, “China and Brazil are traditional trade partners with long established friendship. Both countries have vast territory and abundant resources. In 2017, China is the largest destination and origin for Brazilian exports and imports respectively. The two countries have close international economic and trade relationship. I am confident of the long-term investment and mutual beneficial cooperation in Brazil.”
Dr. Bai Jingtao said, “CMPort is China's largest and the world's leading container port developer, investor and operator. As of 31st December, 2017, CMPort surpassed 100 million TEUs milestone in 2017, in which, our overseas projects such as Colombo International Container Terminal (CICT) in Sri Lanka and Port de Djibouti S.A. in Djibouti have all become benchmarking companies recognized by local governments and people. They achieved not only sound economic benefits but also social benefits, creating employment and inland tax revenue. We will also endeavour to make TCP a win-win cooperation model.”
Upon the takeover of TCP, with the strong support of the Brazilian government, CMPort will take TCP as a new starting point and join hands with Brazilian partners, working unremittingly to achieve win-win and to create a glorious future with mutually beneficial cooperation between China and Brazil.