Billionaire transaction could place the Port of Santos among the world’s major hubs, say experts

Logistical expertise and CMA CGM's presence in various countries are cited as advantages to boost business following the deal (Vanessa Rodrigues/AT)

The acquisition of nearly 48% of Santos Brasil by Grupo CMA CGM, the French giant of global maritime transport, in a transaction involving R\$ 6.3 billion in investments, could position the Port of Santos among the leading strategic hubs in the world. This is the assessment of foreign trade experts consulted by A Tribuna . They highlight the significance of the company operating Tecon Santos, the largest container terminal in Latin America.

Logistics and maritime law specialist Larry Carvalho believes that CMA CGM's entry could be a turning point in modernizing and improving the operational efficiency of the Port of Santos.

“It brings the potential to reduce operational costs and increase the capacity for exporting national production, positively impacting maritime trade and the supply chain. Santos would further solidify its role as a strategic hub for global commerce, particularly on routes connecting Latin America with Asia, Europe, and the United States. ”

The director of Foreign Trade at the Brazilian Chamber of Commerce, Industry and Services (Cisbra), Arno Gleisner, believes that the company will need to invest to update and enhance the efficiency of the terminals.

For him, this “also means jobs and supply activities in the region, increasing healthy competition for users and the production chain that uses the port, benefiting the economy of Santos, the State of São Paulo, and the country.”

Leandro Lopes, an expert in Business and International Relations, suggests that the acquisition could stimulate greater integration between the terminals and CMA CGM's global shipping routes, enhancing Brazil's connectivity with international markets.

“Santos stands to benefit in terms of infrastructure and global expertise, paving the way for a significant increase in cargo movement and improvement in competitiveness in foreign trade. ”

The president of the Port Authority of Santos (APS), Anderson Pomini, celebrates the transaction, stating that CMA CGM “officially indicated that the Port of Santos is considered first-class in infrastructure and logistics. Therefore, they decided to invest and partner with APS and other regulatory bodies. ”

Tecon Santos Located on the Left Bank of the Port of Santos in Guarujá, Tecon Santos operates in an area of 600,000 square meters.

The lease agreement is valid until 2047, and the terminal has a capacity of 2.5 million TEUs (Twenty-foot Equivalent Units), expandable to 3 million TEUs, with berths capable of simultaneously accommodating up to three ships of 14,000 TEUs.

Acquisition involves R\$ 6.3 Billion Santos Brasil announced a relevant market fact detailing the stock purchase and sale agreement, which involves the acquisition of 47.6% of the company by Grupo CMA CGM for R\$ 6.3 billion. The global maritime transport giant will launch a public offer to acquire the remaining stake.

Under the agreement, CMA CGM will purchase approximately 215 million shares and nearly 40 million global depositary receipts of Santos Brasil, owned by the Brazilian investment company Opportunity, for R\$ 15.30 each. This price represents a 20% premium over the closing price of R\$ 12.71 for Santos Brasil shares on Friday.

CMA CGM will present the public acquisition offer within 30 days after completing the purchase of the stake, which still requires approval from the Administrative Council for Economic Defense (Cade) and the National Agency for Waterway Transport (Antaq). The transaction is expected to be completed in the first quarter of 2025.

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