MSC, via its SAS Shipping Agencies Services subsidiary, yesterday announced the settlement of its acquisition of Gram Car Carriers, which will be completed on 25 July.
The acquisition, for NOK263.9 ($24.56) per share, or a total of $696.3m, is for some 97% of the total shares, and following completion, SAS will buy the remaining shares. Gram will cease to be listed on the Oslo Stock Exchange and share trading will also be withdrawn from the OTCQX Best Market in New York.
Gram Car Carriers is the world’s third-largest tonnage provider of pure car/truck carriers (PCTCs), owning 17 vessels. Its 2023 revenues were $200.9m, with net profit of $94m.
MSC has been on something of a spending spree. In March, it confirmed that SAS would take a 42% stake in French logistics operator Clasquin from chair Yves Revol and Lyon-based private equity firm Olymp, with a view to later acquiring the remaining shares. And in February, German regulators agreed its plan to buy 49.9% of Hamburg terminal operator HHLA.
MSC’s M&A activity follows that of CMA CGM, which chartered four new car-carriers this year, marking its entry into the PCTC space.
Emmanuel Cheremetinski, global finished vehicle logistics leader at Ceva Logistics, said in February: “While automotive manufacturing looks set to remain flattish in 2024, it is still a strong market, and car makers appear ready to continue producing and moving vehicles.
“As a result, we expect the next two to three years to remain very challenging for capacity in finished vehicle logistics – deepsea and shortsea applications as well as land-based, car carrier transport. Capacity is already constrained and, while there are new vessels coming online this year and next, global demand remains strong, so capacity will remain tight.”
A pleasant blessing for MSC’s new purchase – for the next couple of years at least.