Global trade enabler DP World has agreed to acquire 71.3% stake in Chilean terminal operator Puertos y Logistica (Pulgosa) from holding company Minera Valparaiso.
In a statement released to NASDAQ Dubai, a stock exchange based in the Middle East, DP World said the purchase would cost approximately US$502 million.
The deal is subject to “relevant third party consensus” but DP World expects it to be completed by the first half of 2019.
Pulgosa operates a long-term concession for Puerto Central (PCE), a multipurpose terminal located in San Antonio, the busiest freight port on the west coast of South America and the key gateway to the Chilean capital Santiago.
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Furthermore, it also operates Puerto Lirquen, a multipurpose terminal situated near Chile’s second largest city and industrial hub Concepcion which handles containers, breakbulk and dry bulk.
Speaking about the potential deal Sultan Ahmed Bin Sulayem, CEO, DO World, said: We are delighted to extend our global footprint with a major entry into Chile, Latin America’s most developed economy, with attractive growth prospects and a dynamic business environment.
“These new assets will allow DP World to serve cargo owners and shipping lines at five key gateways on the west coast of South America in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile).
“PCE and PLQ are both ‘best in class’ terminals in their respective markets, with long-term operating rights, strong cargo diversification and significant capability for expansion.
“The overall value proposition for these terminals is compelling and the addition of capacity to our portfolio will help drive long-term value to all our stakeholders”.