French shipping company CMA CGM is making plans to acquire South American terminal operator Santos Brasil for as much as $2 billion.
The deal was first announced on September 22, according to Reuters, with CMA CGM aiming to pay 6.3 billion reais ($1.13 billion) up front to buy a 47.6% stake in Santos Brasil. After that deal closes, the company will then launch a takeover to scoop up the remaining shares.
Santos Brasil operates five terminals in Brazil, including Tecon Santos, South America’s largest shipping terminal. Tecon Santos handles roughly 2.5 million containers annually, with the capacity to scale up to 3 million. The terminal also has three berths capable of accommodating 14,000 twenty-foot-equivalent unit (TEU) ships.
CMA CGM is the third biggest container shipping line in the world in terms of total ships and TEU capacity, behind Swiss-based MSC and Danish shipping giant Maersk. The French company already has offices in Brazil, with its acquisition of Santos Brasil representing a substantial bid to increase their influence in the country.
