Abu Dhabi Ports buys Dubai shipping firm stake for $800 mln

Published: Updated:
Enable Read mode
100% Font Size

Abu Dhabi Ports Co., which operates 10 ports and terminals in the United Arab Emirates, agreed to buy a controlling stake in Dubai-based Global Feeder Shipping for $800 million as part of plans to scale up its operations.

For the latest headlines, follow our Google News channel online or via the app.

The port operator, controlled by sovereign wealth fund ADQ, will acquire an 80 percent stake in container shipping company GFS, according to a statement. The transaction is fully funded through a loan and GFS’s existing management will remain in place with the founders retaining a 20 percent stake.

“The acquisition will further strengthen the company’s hub and spoke model by linking core markets in the Gulf, Indian Subcontinent, Red Sea, and Turkey to its key port assets, such as Khalifa Port, AD Ports said.

The acquisition is Abu Dhabi Ports’ largest external investment and its first major deal in neighboring Dubai, where DP World Ltd., one the world’s largest port operators, is based. Established in 2006, the firm went public in January, raising $1.1 billion from an initial public offering.

AD Ports said it will look to integrate GFS into its maritime cluster, which offers shipping, offshore and subsea services. “Integrating GFS into our operations will enable us to increase our customer base, broaden our global footprint and build upon this significant momentum, Chief Executive Officer Mohamed Juma Al Shamisi said.

GFS owns and operates 26 vessels with a total capacity of 72,500 twenty-foot equivalent units. The company provides services that connect the UAE to India, Pakistan, Sri Lanka, Egypt, Sudan, Djibouti, Yemen, Saudi Arabia, Bahrain, China, South Korea, Vietnam and others.

Read more:

Egypt to cooperate with Maersk on $15 bln clean fuels project for ships: Presidency

Ship carrying first Ukraine grain cargo nears Syria: Sources

Shipping disruption continues as Rhine water levels fall again in Germany

Top Content Trending