- Santos Brasil is the leading terminal operator in Brazil with 8 strategic assets in container, liquid, and vehicle handling and logistics services across the country. Its flagship asset is the container terminal Tecon Santos in the State of São Paulo.
- A major investment for CMA CGM, expanding its presence in Brazil and strengthening the Group’s position as a global terminal operator.
- CMA CGM will launch a public offer on the remaining shares in the coming months.
- CMA CGM commits to support the development of Santos Brasil’s terminals, enhancing capacity and service quality to the terminal customers, and to foster employees’ personal and professional growth.
- CMA CGM will work closely with port authorities and other Brazilian regulatory bodies to develop the Port of Santos, as well as other ports in which Santos Brasil operates.
The CMA CGM Group, global player in sea, land, air and logistics solutions, has announced the signing of a definitive and irrevocable agreement to acquire a c.48% stake in Santos Brasil Participações S/A (« Santos Brazil »), a prominent listed Brazilian multi-terminal operator, from funds managed by Opportunity.
“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.
8 major industrial assets in one of the world’s fast-growing regions
Santos Brasil manages a portfolio of 8 assets on the Brazilian coast, including 3 Container Terminals, 1 Vehicle Terminal, 1 Liquid Bulk Terminal and 3 Logistic Facilities. These assets are located in the Ports of Santos, Imbituba, Vila do Conde, Itaqui and in Sao Paulo.
Over the 12 months ending June 30, 2024, the company generated BRL 2,549m of revenues (USD 458m) and BRL 1,284m of EBITDA (USD 230m).
Tecon Santos terminal is the largest container terminal in South America, with a strategic location in the Port of Santos and benefits from first-class infrastructure:
- A long-term concession agreement until 2047.
- A capacity of 2.5m TEUs, expandable to 3.0m in the near future.
- 3 berth slots enabling to handle 14,000 TEUs ships.
- Most efficient terminal in the Port of Santos with excellent berth productivity.
The acquisition of Santos Brasil marks another significant milestone in CMA CGM’s global port development strategy, reinforcing its position as a leading global multi-user terminal operator with investments in approximately 60 terminals worldwide.
A strategic move to enhance CMA CGM’s presence in Brazil
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.
The expansion potential of Tecon Santos terminal capacity and its operational excellence will be a useful support to enhance service quality. To meet global demand, CMA CGM 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.
These strategic facilities will continue to operate as multi-user terminals under the leadership of the current management team and will continue to focus on improving the quality of their services to satisfy the expectations of their customers.
CMA CGM is also committed to pursuing the decarbonization plan already initiated by Santos Brasil.
CMA CGM Group, a historic player in Brazil
The CMA CGM Group has been operating in Brazil for over 20 years, with currently 8 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 the most differentiated 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.
This strategic move will enable CMA CGM to offer seamless connections between Europe, Asia, North America, Caribbean solidifying Brazil's position as a key hub in the group’s worldwide operations and reinforcing synergies with MERCOSUL Line affiliate.
CMA CGM, is today deploying liquefied natural gas (LNG)-powered vessels to Brazil, marking a major step in its commitment to more sustainable and environmentally friendly maritime transport.
Timeline of the transaction and tender offer
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 completion of the acquisition, CMA CGM will launch a mandatory tender offer on all other Santos Brasil shares, on same terms, in line with Brazilian market rules.
Please refer to Santos Brasil’s material fact notice available on its website for information regarding the transaction’s financial terms.