APM Terminals has agreed to purchase a 37.5% stake in Russia’s Global Ports from N-Trans for $860m in a bid to establish its presence in the Russian cargo market.
Under the deal, APM will acquire 50% of N-Trans’ 75% ownership of Global Ports.
With the acquisition, APM and N-Trans will have an equal stake of 37.5% each in Global Ports, which is valued at $2.3bn, with the remaining 25% being listed in London.
The acquisition will add Global Ports’ three container terminals in Russia, two container terminals in Finland, one inland container depot in the vicinity of St. Petersburg and a major oil and oil products terminal to APM Terminals’ global network.
APM Terminals CEO Kim Fejfer said that the investment will offer value to the company’s shipping customers today and create further opportunities to accommodate their growth in the future.
"Russia will need world-class port infrastructure and operational excellence to serve global shipping lines and its own ambition of economic development," said Fejfer.
Global Ports has a 30% share of the total container volumes in Russian ports and 23% of the total exports of fuel oil from the former Soviet Union countries.
Global Ports reported revenues of $501m in 2011, with adjusted earnings before interest, tax, depreciation and amortisation of $282m.
According to the companies, the deal is expected to be completed by the end of 2012, once all the relevant approvals have been obtained.