HMM has recently signed a sales and purchase agreement with CMA CGM, the world’s fourth largest shipping company, for the sale of its 50 percent stake minus one share in Total Terminal International Algeciras (TTI Algeciras), a container terminal in the south of Spain.
Shares of TTI Algeciras are owned by HMM and HT Algeciras which is a special purpose company wholly controlled by HMM. HMM directly owns a stake of 50 percent minus one share, with the remaining 50 percent stake plus one share held by HT Algeciras.
HMM has decided to sell its own 50 percent stake minus one share but still maintains its position as the largest shareholder through HT Algeciras.
The financial details including the price of the deal were not disclosed.
HMM expects a great synergy effect based on strategic cooperation with CMA CGM in terms of enhancing profitability and operational capabilities by securing additional cargoes.
CMA CGM is a French container transportation and shipping company. It serves 200 shipping routes between 420 ports in 150 different countries, ranking fourth behind Maersk Line, MSC and COSCO Shipping Lines.
HMM official said, “TTI Algeciras has a great geographical advantage to play an integral role as a transshipment hub located at the center of containerized cargo flow on main trade lanes. We believe TTI Algeciras will take center stage in the Gibraltar area as it has a high potential for future growth and development. We are expecting more business opportunities in the years to come based on stable operations of the terminal.”
This transaction, subject to regulatory approval, is expected to be completed in the fourth quarter of 2020 for joint operations to be started.
Meanwhile, TTI Algeciras was formerly operated by Hanjin Shipping but HMM acquired a 100 percent stake in the terminal in 2017.
The terminal is the first semi-automatic terminal in southern Europe and the Mediterranean area. TTI Algeciras counts with a total area of 357,740 square meters and initiated its operation on May 2010, with a maximum handling capacity of 1.6 million TEUs. The terminal can accommodate the latest and future generations of ULCVs (Ultra Large Container Vessels).
Source: Business Korea