South Korea’s HMM has signed an agreement with CMA CGM to sell its 50% stake minus one share in Spain’s Total Terminal International (TTI) Algeciras.

The financial terms of the transaction were not revealed.

The terminal shares are owned by HMM and a special purpose company controlled by HMM, HT Algeciras.

HMM directly controls a stake of 50% minus one share while the other 50% stake plus one share is owned by HT Algeciras.

Even after the sale, HMM will remain the largest shareholder via HT Algeciras.

In 2016, HMM was selected as the preferred bidder to acquire a 100% share in TTI Algeciras, which was owned by the bankrupt Hanjin Shipping at the Port of Algeciras, Spain.

HMM acquired a 100% stake in the terminal in 2017.

An HMM official said: “TTI Algeciras has a great geographical advantage to play an integral role as a transhipment hub located at the centre of containerised cargo flow on main trade lanes.

“We believe TTI Algeciras will take centre stage in the Gibraltar area as it has a high potential for future growth and development. We are expecting more business opportunities in the years to come based on stable operations of the terminal.”

The transaction is expected to complete in the fourth quarter of this year, pending regulatory approval. Joint operations will commence after the transaction closes.

In April, HMM revealed the world’s largest containership HMM Algeciras in Geoge, South Korea.