HMM has signed a sales and purchase agreement with CMA CGM for the sale of its 50% stake minus one share in Total Terminal International Algeciras (TTI Algeciras), a container terminal in the south of Spain.
TTI Algeciras, located in the south of Spain, a strategic point in the Strait of Gibraltar, is the first semi-automatic terminal in southern Europe and the Mediterranean area, with an annual capacity of 1.6 million TEUs.
TTI Algeciras is jointly owned by HMM and HT Algeciras (a special purpose company wholly controlled by HMM), with HMM directly owning a stake of 50% minus one share, while the rest is held by HT Algeciras.
As part of the agreement with CMA-CGM, HMM will sell its 50% stake minus one share, but still maintain its position as the largest shareholder through HT Algeciras.
Contingent to the requisite regulatory approvals being obtained, the transaction is expected to be completed in Q4 2020 for joint operations to be started.
The strategic co-operation between HMM and CMA-CGM is expected to generate greater synergies, in terms of enhancing profitability and operational capabilities.
An HMM official was quoted as saying, “TTI Algeciras has a great geographical advantage to play an integral role as a trans-shipment hub located at the centre of containerised cargo flow on main trade lanes. We believe TTI Algeciras will take centre stage in the Gibraltar area as it has a high potential for future growth and development. We are expecting more business opportunities in the years to come based on stable operations of the terminal.”
TTI Algeciras was formerly operated by Hanjin Shipping but HMM acquired a 100% stake in the terminal in 2017.