transport

Maersk unit signs deal with DP World to buy 37.5% stake in Saudi terminal

UAE ports operator to retain 62.5% stake, continue to lead operations.

Global shipping giant Maersk’s subsidiary, APM Terminals, is acquiring a significant stake in the South Container Terminal (SCT) in Saudi Arabia, a facility fully controlled by UAE ports operator DP World.

The two entities confirmed on Wednesday that they have signed a deal in which APM will buy a 37.5% stake in the terminal at Jeddah Islamic Port, while DP World will retain a 62.5% majority shareholding and continue to lead the operations.

Neither party disclosed the value of the transaction. DP World, which had secured a 30-year 100% operational concession for SCT in 2019, recently completed a SAR 3 billion ($800 million) upgrade of the facility to more than double its capacity

With Maersk’s massive shipping network and DP World’s operational expertise, the new deal effectively combines the strengths of two of the world’s biggest port operators to boost connectivity and position Saudi Arabia as a primary hub for Asia-Europe-Africa trade.

“The investment strengthens the long-term collaboration between the two organisations and brings together complementary capabilities to enhance Jeddah Islamic Port’s role as a vital gateway,” the two entities said.

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

Rethinking the use of quantitative easing for macro stimulus

Quantitative easing has faced recent criticism for causing large central bank losses and contributing to…

4 days ago

The AI premium

Artificial intelligence is already reshaping the economy and society. This column analyses how AI affects…

4 days ago

What four charts reveal about the global jobs challenge

A record number of young people are approaching working age in emerging markets and developing…

4 days ago

Beyond the snapshot: How poverty really unfolds over time in the EU

Poverty is not a static condition but a dynamic process. Yet the at-risk-of-poverty rate, which…

4 days ago

Dividend tax reforms: Why design shapes revenue and measured inequality

Governments increasingly look to capital income for both revenue and redistribution. This column compares two…

4 days ago

Creating Jobs Through a Business Plan Competition: Does it matter how entrepreneurs are selected and how much funding they are given?

Of the estimated 244 million firms in Africa, 232 million (95%) are own-account businesses consisting of…

4 days ago