MSC Rail, a subsidiary of MSC Mediterranean Shipping Company completed the acquisition of Portuguese rail freight operator, CP Carga. This marks the beginning of the implementation of its long term strategy to strengthen and expand the business of CP Carga. The deal represents an investment of EUR 53 million, of which EUR 51 million will be used to recapitalize the company. The signing of the contract between the two entities has followed the public tender for the sale of the CP Carga, which was won by MSC Rail. In this initial closing MSC has acquired 95% of the company – there will be an employee’s sales offer for the remaining 5% – and, among other arrangements, MSC Rail is committed to keep the current “Employees Agreement”.
The Portuguese Competition Authority issued the approval for the purchase of CP Carga in December 2015, three months after the initial sale and purchase contract had been signed in Lisbon on the 21st September.
“We have now the chance to put our strategic plan in action, to drive the company towards a bright future and develop it into a major player in the Iberian Peninsula in the coming years. The acquisition and the related investments demonstrate MSC’s unwavering commitment to Portugal and the development of its logistics sector,” Giuseppe Prudente, Chief Logistics Officer at MSC said.
In July 2015, it was announced that three bidders were shortlisted for CP Carga privatisation: Atena Equity Partners, Cofihold, and Mediterranean Shipping Company. In 2012, Portugal authorities announced plans for the CP Carga and Railway Equipment Maintenance Company (EMEF) privatisation, but it was postponed and in March 2015, when the Governement approved the revised plan for the privatisation of both companies.
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