China Merchants Port Holdings Company Limited (CMPort) announced that it has entered into a share purchase agreement with TCP Participações (TCP), to acquire 90% Stake of the Port of Paranaguá in Brazil, for USD 923 million.
The acquisition of TCP will allow CMPort to further perfect its overseas global port network. In spite of the existing ports in Southern Asia, Africa, North America and Europe, the Group can further expand its business to the Latin America region through the existing acquisition.
Furthermore, the investment will provide the Group with opportunities to make use of the marine transportation hub of TCP to develop its logistics network, export/import and industrial zone and potential residential projects and related financial service platforms, allowing for greater commercial synergies within the Group.
Dr. Hu Jianhua said: “The transaction will help us achieve our commercial objectives, and at the same time, enhance the trade development between Brazil and China and the comprehensive strategic cooperation relationship of the two countries.”
Currently, the port is the second largest in Brazil. The expansion, expected to start later this year, will increase the terminal’s design capacity of 1.5 million TEUs each year to 2.4 million TEUs each year. The expansion is expected to complete by the second half of 2019.
Dr. Bai Jingtao said, “TCP is not only CMPort’s cornerstone to enter Brazil, but also the future hub of the rising commodity and goods trade flow between Brazil and China. CMPort will also leverage its international port operation experience and local connectivity to help TCP continue its success story as one of the leading ports in Brazil and Latin America.”
