São Paulo – Abu Dhabi’s AD Ports Group and Brazil’s Corredor Logística e Infraestrutura (CLI) announced on Tuesday (2) that AD Ports has acquired the Brazilian company for AED 3.1 billion, equivalent to USD 835 million. In a material fact filing, CLI said the transaction is subject to regulatory approval. The deal is expected to be completed in the second half of the year.
AD Ports said the transaction marks the Emirati company’s entry into South America, as well as providing access to a “vast new number of opportunities.” In a statement, AD Ports Group Managing Director and CEO Mohamed Juma Al Shamisi said the acquisition represents a “radical” step for the company by expanding its reach into Latin America and deepening its presence in the agribusiness sector.
“Under the wise guidance of our leadership in the United Arab Emirates, AD Ports Group is committed to enabling trade in one of the world’s most-important, fastest-growing agricultural commodities markets, which will not only benefit the Group’s global clients, including those in Brazil, but also strengthen the AD Ports Group global network,” Al Shamisi said in a statement.
In its announcement, the Abu Dhabi company said the Brazilian operation will support AD Ports’ plans to develop an East-West trade corridor linking Brazil’s economy with the Indian subcontinent, East Africa, and Southeast Asia. The company also noted that the Mercosur trade bloc is negotiating a trade agreement with the UAE and that the two countries maintain a “highly active” partnership, as well as a double taxation avoidance agreement.
CLI is headquartered in São Paulo and operates two agricultural bulk export terminals: one at the Port of Santos, on the coast of São Paulo state, and another at the Port of Itaqui, in Maranhão. Known as CLI Sul, the Santos terminal is Brazil’s leading sugar export facility and also handles significant volumes of corn and soybeans. The sale was carried out by CLI’s two shareholders, IG4 Capital and Macquarie Asset Management.
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Translated by Guilherme Miranda
