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CMA CGM to launch takeover bid for Santos Brasil after acquisition: French shipping Giant CMA CGM is planning a full takeover bid for multi-terminal port operator Santos Brasil, after it agreed to buy a 48% stake of the company worth USD 1.2 bn (BRL 6.3 bn), Reuters reports, citing a statement. CMA CGM would buy some 215 mn shares and c.40 mn Global Depositary Receipts of Santos Brazil for USD 2.78 (BRL 15.30) per share. The transaction is expected to be finalized in early 2025, then CMA CGM would take over within 30 days after the closing of the stake purchase and needed approvals.
Details: The agreement is long-term till 2047, with a capacity of 2.5 mn TEUs, which could be expanded to 3 mn, and three berth slots capable of handling 14k TEUs ships, according to the statement. Santos Brasil manages a portfolio of eight assets on the Brazilian coast, which includes three container terminals, one vehicle terminal, one liquid bulk terminal and three logistics facilities, all the assets are located in Ports of Santos, Imbituba, Vila do Conde, Itaqui, and São Paulo.
Looming strikes at US ports threaten supply chains: Almost 45k dockworkers at all major eastern US and Gulf coast ports are threatening to strike on 1 October, demanding a near 80% raise over six years, Bloomberg reports. The strike — which would be just weeks before the US presidential elections — could potentially disrupt supply chains and hike prices. Analysts warn that the impact would be felt worldwide as port congestion hampers shipping capacity and increases freight rates.
The impact: The backlog from a weeklong strike would take at least four weeks to clear and impose a USD 4.5 bn to USD 7.5 bn hit, Bloomberg quoted Oxford associate economist Grace Zwemmer as saying. The impact will also be felt with items that cannot be stockpiled, such as bananas, two-thirds of which are unloaded at eastern and Gulf Coast ports.
OTHER STORIES WORTH KNOWING THIS MORNING-
- Alaska Airlines flights disrupted after IT outage: US airline Alaskan Airlines faced an IT outage on Monday, disrupting operations and delaying flights. The airline issued a mandatory ground stop for arrivals in Seattle for two hours. Alaskan Airlines said the outage was not due to a cyber attack and that it has been resolved, although a residual impact is still expected. (Reuters)
- Singapore opens new shipyard: Singapore’s ST Engineering has opened a USD 95 mn yard — dubbed Gulf Yard — to build and repair ships at Gulf Road in Singapore’s west. (Statement)
- DHL to triple its shipping capacity at Porto Airport: DHL Express Portugal is expanding its presence at Francisco Sá Carneiro Airport in Porto, Portugal with a new facility worth EUR 25 mn. The facility is 18k square meters, can process 6.5k pieces per hour for imports, an increase of 150%, and 5k pieces per hour for exports, an increase of 300%. (Statement)
