Hong Kong firm China Merchants have agreed to a 23.5% stake in Port de Djibouti SA (PDSA) for $185 million, its second acquisition in a bid to become a major global container terminal operator.
PDSA’s main assets are a 66.7% stake in the Doraleh Container Terminal and a multipurpose cargo facility in the Port of Djibouti in the Horn of Africa at the entrance to the Red Sea.
According to Dubai-based DP World, which owns the remaining stake in the container terminal, PDSA is “the most technologically advanced container terminal in the African continent.”
China Merchants and consortium partners China Shipping Terminal and Cosco Pacific have also won approval from Taiwan’s investment committee for the $135 million acquisition of a 30% stake in a container terminal owned and operated by ocean carrier Yang Ming Marine Transport.
These two deals are expected to be followed with an announcement of an agreement to acquire a 49% stake in Terminal Link, the port operating arm of French ocean carrier CMA CGM. This deal will give China Merchants a foothold in Europe and North America as the company already has facilities in Marseilles, Le Havre, Zeebrugge and Houston and Miami.