The deal helps J M Baxi Ports & Logistics tap into the strengths of Hapag Lloyd together with its partnership with CMA Terminals Holding, a unit of CMA CGM Group, for the container terminal at Jawaharlal Nehru Port as well as pan India.
German container shipping line Hapag-Lloyd AG said it has signed a binding agreement on Wednesday to acquire a 35 percent stake in J M Baxi Ports & Logistics Ltd from a unit of Bain Capital Private Equity for an undisclosed amount, as it looks to build terminal and infrastructure business in India.
Additionally, Hapag-Lloyd AG signed a binding agreement with J M Baxi Ports & Logistics and its promoters, the Kotak family, to subscribe to a capital increase by the company and raise Hapag-Lloyd’s shareholding to 40 percent.
Bank of America advised Hapag-Lloyd on the transaction.
In December 2020, US-based Bain Capital Private Equity invested about Rs1,500 crore for a 35 per cent stake in International Cargo Terminals and Infrastructure Pvt Ltd, since renamed as J M Baxi Ports & Logistics.
With the Hapag-Lloyd deal, J M Baxi Ports & Logistics will have two key global shipping groups as its partners, a move that helps bring volumes and add to its strengths as an integrated logistics services company.
CMA Terminals Holding, a subsidiary of the CMA CGM Group, a global player in sea, land, air, and logistics solutions is a 50 percent stakeholder in Nhava Sheva Free Port Terminal Pvt Ltd, the entity that was awarded the rights to run the container terminal previously operated by State-owned Jawaharlal Nehru Port Authority near Mumbai.
J M Baxi Ports & Logistics is a top private terminal and inland transport services firm with operations encompassing container terminals, a multi-purpose terminal, inland container depots, container freight stations and additional logistics activities, such as rail service offerings across India. The company handles a combined container volume of about 1.6 million twenty-foot equivalent units (TEUs).
J M Baxi Ports & Logistics recently won concessions for operating container terminals in Nhava Sheva and Tuticorin ports.
“Terminal and infrastructure investments are a crucial element of our strategic agenda and India is one of our key growth markets. Acquiring a significant share in J M Baxi Ports & Logistics Limited will significantly boost our presence in India with a trusted local partner and it is another important step to build up our terminal and infrastructure business,” said Rolf Habben Jansen, CEO, Hapag-Lloyd.
In driving its Strategy 2023, Hapag-Lloyd has continuously expanded its involvement in the terminal sector, most recently through an agreement to acquire the terminal business of Chile-based SM SAAM. Hapag-Lloyd also has stakes in the Italy-based Spinelli Group, the JadeWeserPort in Wilhelmshaven, the Container Terminal Altenwerder in Hamburg, Terminal TC3 in Tangier, and Terminal 2 in Damietta, Egypt, which is currently under construction.
The closing of the transactions is subject to approval by the relevant authorities and to additional conditions customary for a transaction of this kind.
With a fleet of 252 modern container ships and a total transport capacity of 1.8 million TEUs, Hapag-Lloyd is one of the world’s leading liner shipping companies. Hapag-Lloyd has a container capacity of 3 million TEUs – including one of the largest and most modern fleets of reefer containers.
Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America, and Intra-America trades.
