CMA CGM secures majority stake in Santos Brasil to strengthen South American operations

BRAZIL – CMA CGM Group has officially become the majority shareholder of Santos Brasil Participações, marking a major expansion of its logistics footprint in South America.

The group announced it had closed the deal to buy approximately 47.9 percent of Santos Brasil from funds managed by Opportunity.

The purchase was finalized after receiving regulatory approvals from Brazilian authorities. CMA CGM now owns 51 percent of Santos Brasil, making it the controlling shareholder.

“As announced on September 23, 2024 and as a result of the closing of the transaction, CMA CGM, through CMA Terminals Atlantic will launch a mandatory tender offer to acquire all outstanding shares of Santos Brasil for the same price and conditions paid to Opportunity until the financial settlement of the tender offer,” the company said in a statement.

Key Asset: Tecon Santos Terminal

Santos Brasil is the leading terminal operator in Brazil, known for its container, liquid, and vehicle handling services.

Its flagship, the Tecon Santos container terminal in São Paulo, is South America’s largest and handles a major share of Brazil’s trade.

Over the 12 months ending June 30, 2024, Santos Brasil recorded BRL 2.5 billion in revenue (about US$458 million) and BRL 1.3 billion in EBITDA (about US$230 million).

CMA CGM has operated in Brazil for over two decades, employing more than 10,000 people. It has grown its presence both organically and through strategic moves such as the earlier acquisition of Mercosul Line, a well-known shipping company in the region.

Impact on fresh produce logistics

The acquisition could bring important benefits to Brazil’s fresh produce exporters. CMA CGM plans to expand the Tecon Santos Terminal, increasing its annual capacity from 2.5 million TEUs to 3 million.

This development is expected to strengthen cold chain logistics, which is crucial for handling perishable goods.

Santos Brasil already handles around 40 percent of Brazil’s container traffic and is known for its efficient operations. CMA CGM’s involvement may improve processes further, helping exporters reduce delays and boost service reliability.

Integration with CEVA Logistics, CMA CGM’s logistics arm, will also help fresh produce reach international markets faster. “We see this investment as a strong commitment to Brazil’s role in the global supply chain,” a company official said.

Additionally, CMA CGM has been putting strong focus on environmental practices. The group’s ongoing efforts toward decarbonization could help fresh produce exporters lower their carbon emissions during shipping.

The investment in Santos Brasil is seen as part of a broader strategy to secure a stronger place in global shipping and logistics while offering more reliable services for exporters and importers alike.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.