The Brazilian competition authority, the Administrative Council of Economic Defense (CADE) authorised China Merchants Port Holdings (CMPort) to buy Brazilian port operator TCP Participações, according to official information.
CADE justified its decision based on the fact that the transaction does not involve vertical or horizontal integration, and is therefore not an obstacle to free competition.
Last September, China Merchants Port Holdings, with headquarters in Hong Kong, announced it would pay 2.891 billion reais (US$922 million) for 90% of the shares of TCP, the company that manages the container terminal of Paranagu under a concession scheme.
The deal, which was concluded at the BRICS summit in Xiamen, in China’s Fujian province, includes TCP log, a company that is 100% controlled by TCP Participações and that sells logistics solutions for Brazilian importers and exporters, specifically door-to-door services.
The Paranaguá container terminal, one of the largest in Brazil, has an annual processing capacity of 1.5 million TEU (twenty foot equivalent unit) and has started an expansion project to be able to process 2.4 million TEUS per year.
The CMPort group operates ports in China and Hong Kong, as well as in third countries, such as Sri Lanka, Indonesia and the United States, and this deal in Brazil is the beginning of its expansion to Latin America. (macauhub)