German liner giant Hapag-Lloyd AG has signed a binding agreement to acquire a 35% stake in Indian terminal operator J M Baxi Ports & Logistics Limited (JMBPL) .
The stake is being acquired from a U.S.-based Bain Capital Private Equity affiliate.
The German shipping major has also signed a deal with JMBPL and its promoters, the Kotak family, to subscribe to a capital increase to raise Hapag-Lloyd’s shareholding to 40%.
The deal will see Hapag-Lloyd significantly boost its presence in India in line with its Strategy 2023.
JMBPL is a growing private terminal and inland transport service provider in India, with operations comprising container terminals, a multi-purpose terminal, inland container depots, container freight stations, and other logistics activities, such as rail service offerings across India.
It currently employs approximately 5,400 staff and handles a combined container volume of around 1.6 million TEU. The company also recently won additional concessions for operating container terminals in Nhava Sheva and Tuticorin.
“Terminal and infrastructure investments are a crucial element of our strategic agenda and India is one of our key growth markets. Acquiring a significant share in J M Baxi Ports & Logistics Limited will significantly boost our presence in India with a trusted local partner and it is another important step to build up our terminal and infrastructure business,” said Rolf Habben Jansen , CEO of Hapag-Lloyd.
The transaction is subject to the approval of relevant authorities and other customary conditions for such a deal.
Upon closing, Hapag-Lloyd will further reinforce its significant involvement in the terminal sector, having recently acquired the terminal business of Chile-based SM SAAM, and Spinelli Group in Italy, JadeWeserPort in Wilhelmshaven, Container Terminal Altenwerder in Hamburg, Terminal TC3 in Tangier, and Terminal 2 in Damietta, which is currently under construction.