Through strategic cooperation with French shipping company CMA CGM, HMM succeeded in securing stable supplies for the Spanish Algeciras container terminal (TTIA). HMM announced on Aug. 10 that it signed a contract with CMA CGM to sell TTIA shares.
HMM holds a 100 percent stake in TTIA -- 50 percent-1 of the total directly, and 50 percent+1 through Special Purpose Company (SPC) HT Algeciras. The deal is a contract for 50 percent-1 equity that is held directly.
HMM will continue to hold 50 percent plus one share through SPC, maintaining its status as the largest shareholder, while CMA CGM will become the second-largest shareholder through the stake purchase.
The two companies are looking forward to the mutual WIN-WIN effect as they will establish a strategic partnership with TTIA JV (Joint Venture). HMM will be able to secure terminal profits through the supply contribution to CMA CGM and stable operation of TTIA, a bridgehead for expanding operations in the Mediterranean and Africa.
In addition, CMA CGM can expect to expand its business network using its strategic logistics hub by securing stakes in the best transshipment port in the Gibraltar Strait, where the north-south route linking Europe and South America and the east-west route between Asia and North America intersect.
A HMM official said, " Algeciras terminal is very close to the North African market, so there is a high possibility of growth. We will strengthen our terminal competitiveness by expanding our business network through cooperation with CMA CGM, which has strength in supplies in Africa based on Europe."
To close the deal, the two companies have decided to jointly carry out necessary approval procedures, including reporting of business combinations and port offices, and aim to launch JV operations in the fourth quarter of 2020.
HMM acquired 100 percent of the Algeciras terminal held by Hanjin Shipping in 2017, and this year it named the world's largest 24,000 TEU container ship No. 1, which broke the world record for shipments by putting it on European routes, "HMM Algeciras," showing its expectations for the terminal.
