The good cooperation between Cosco Pacific and Hutchison Port Holdings (HPH) continues with the former buying a 35% stake in Rotterdam's Euromax Terminal for EUR125.4m ($143.3m).
The share sale and purchase agreement with HPH unit ECT Participations comprises a total consideration of EUR41.4m for 35% of the share capital of Euromax and EUR84m euros for of the shareholder’s loan owed by Euromax to ECT, the company said in a stock market release.
Euromax Terminal Rotterdam is located at Port of Rotterdam's new Maasvlakte I development. It is an automated container terminal, which commenced operation in mid-2010. The total throughput of the terminal in 2015 was about 2.28m teu.
This acquisition is not only in line with the company’s strategy of investing in overseas hubs, but also coordinates with Cosco Shipping's hub strategy, resulting in a good synergy, Cosco Pacific said.
"The board believes that, based on the medium to long-term development trend, the Port of Rotterdam will continue to be Europe’s main hub. That port has been the base port of Cosco Shipping in North-western Europe for a long time. The board expects Cosco Shipping to continue to deploy ultra-large container vessels to the European shipping route and call the Port of Rotterdam as its major hub in the region," it said.
"The board believes that the terms of the acquisition are fair and reasonable and in the interests of the shareholders of the company as a whole," Cosco Pacific concluded, adding however that the deal is still subject to relevant approvals.