Posted on October 23, 2024
MSC continues its expansion with a $768 million deal to acquire a majority stake in Brazilian port operator Wilson Sons.
Mediterranean Shipping Co, through its subsidiary Shipping Agencies Services, has agreed to purchase a 56.47% stake in Brazilian port and maritime logistics operator Wilson Sons from London-listed Ocean Wilsons Holdings. The deal is valued at R$4.352 billion ($768 million), according to Splash247.
Ocean Wilsons initiated a strategic review of its investment in Wilson Sons in June 2023, with the sale expected to be completed in the second half of 2025, pending regulatory clearances. Once finalised, MSC plans to acquire the remaining shares of Wilson Sons at the same terms, reports Reuters.
Wilson Sons operates two container terminals, Tecon Rio Grande in Rio Grande do Sul and Tecon Salvador in Bahia, as well as one of the largest tugboat fleets in Latin America. The company’s assets were valued at $1.126 billion as of June 2023, notes Splash247.
Ocean Wilsons expects to realise at least $593 million in net cash proceeds from the sale, a portion of which will be distributed as special dividends, with the rest reinvested in its diversified portfolio, Reuters adds.
This acquisition follows MSC’s continued expansion in Brazil, including the purchase of local logistics firm Log-In Logistica in 2021. It also comes shortly after rival CMA CGM’s $2 billion acquisition of Santos Brasil, according to Reuters.
Wilson Sons shares, which had increased significantly following a 2021 restructuring, dropped more than 9% on the São Paulo stock exchange following the announcement, while Ocean Wilsons shares surged 8.3% on the London Stock Exchange before retreating, Reuters reports.
MSC is expanding not only in South America but also in Europe. In September, the city parliament of Hamburg approved MSC’s acquisition of a 49.9% stake in the port’s terminal operator, Hamburger Hafen und Logistik AG (HHLA). Despite opposition from local trade unions and political groups, the deal passed with 105 votes in favour. MSC committed to a €450 million equity injection and a €775 million investment in container terminals and intermodal networks, subject to approval by the European Commission.
