Abu Dhabi acquires Egyptian shipping companies for $140 million

Abu Dhabi Ports Group has agreed a 70% stake in the $140 million associated international cargo carrier, which wholly owns Egypt-based shipping companies with “strong regional presences”.

Transmar, is an Egypt-based container shipping company that operates across the Middle East [Getty]

The Abu Dhabi Ports Group has reached a $140 million deal to acquire majority stakes in two Egyptian shipping companies.

The integrated trade facilitation group has agreed a 70% stake in International Associated Cargo Carrier, which wholly owns Egypt-based companies – with “strong regional presences” – Transmar and Transcargo International (TCI).

The deal is the port group’s first international expansion to be completed and will be funded entirely from AD Ports Group’s existing cash reserves, according to a statement released by the group on Friday.

“This is…an important step in our ambitious international expansion plan. This acquisition will support our broader growth objectives for North Africa and the Gulf region and expand the portfolio of services we are able to offer in these markets,” said Falah Mohammed Al Ahbabi, President of AD Group. Ports.

“Egypt and the Red Sea Coast are increasingly important parts of our global maritime offering, and we believe we are well positioned…to drive business and economic growth for customers and communities along of these routes” Captain Mohamed Juma Al Shamisi, Managing Director and CEO of the Ports Group added.

Transmar is a container shipping company that operates across the Middle East, the Red Sea, the Persian Gulf and the eastern coast of Africa.

TCI is a stevedoring company with two business segments – container and bulk cargo services – operating primarily out of Adabiya Port, where it is the exclusive container operator.

Under the agreements, KPMG LG acted as financial advisor to AD Ports Group, while PwC acted as commercial advisor and Matouk Bassiouny and Hennawy acted as legal advisor.

The port group is owned by the ADQ, one of the largest holding companies in the region and a strategic partner of the government.