Hyundai Merchant Marine (HMM) has signed a sales a purchase agreement with CMA CGM for the sale of its 50% stake in the Total Terminal International Algeciras (TTI Algeciras).
In a statement, the Japanese carrier says the shares were owned by HMM and HT Algeciras, a special purpose company which it wholly owns.
The exact details of the deal were not disclosed, by HMM said it expects “a great synergy effect based on strategic cooperation with CMA CGM in terms of enhancing profitability and operational capabilities by securing additional cargoes”.
Additionally, HMM said, “TTI Algeciras has a great geographical advantage to play an integral role as a transshipment 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.”
This transaction, subject to regulatory approval, is expected to be completed in Q4 2020 for joint operations to be started.
TTI Algeciras was formerly operated by Hanjin Shipping but HMM acquired a 100% stake in the terminal in 2017.
HMM has the largest container ship in the world, the HMM Algeciras, which can carry approximately 24,000 TEU.