ShippingWatch

Analyst: Maersk’s Russian port acquisition under pressure

CMA CGM’s decision to sell 49 percent of the shipping company’s global port business, Terminal Link, at a low price, puts pressure on APM Terminals to succeed with its purchase of Russian Global Ports, says analyst Jesper Christensen of Danish bank Alm. Brand.

Last week, Chinese port operator China Merchant purchased 49 percent of CMA CGM’s port operator Terminal Link, which increases the expectations for APM Terminals’ return on its far more expensive acquisition of Russian Global Ports.

“In 2011, Terminal Link handled 8.1 million teu, and the total sales price of 816 million Euros indicates that 100 Euros have been paid for each handled teu. In comparison, APM Terminals paid more than 1,000 Euros per handled container when the company acquired Russian Global Ports. Thus, the low transaction price for Terminal Link puts pressure on APM Terminals to reap the biggest possible benefits from the other strategic aspects of the Global Ports acquisition,” writes Jesper Christensen in an analysis.

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