DP World conditionally agrees to restructure of French ports JV

DP World conditionally agrees to restructure of French ports JV

Dubai-based global port operator DP World Limited has conditionally agreed to restructure its interest in a joint venture (JV) which operates two French ports.

DP World agreed with Terminal Link SA, a joint venture 51 percent owned by CMA CGM and 49 percent owned by China Merchants Port, to restructure Portsynergy SAS, which is a 50:50 joint venture and a holding company for subsidiaries Génénerale de Manutention Portuaire SA (GMP) and Eurofos SARL (Eurofos).

The companies operate container terminals under long-term concession agreements in Le Havre, on the northwestern coast of France, and in Port of Fos, close to Marseille in the south of France, DP World said.

Under the terms of agreement, DP World will consolidate Eurofos, while maintaining 50:50 ownership structure between DP World and Terminal Link.

Terminal Link will acquire a controlling majority in the holding company of Le Havre, while DP World will sell its minority share in Le Havre to funds, with a transaction enterprise of value of €700 million ($770 million) on a 100 percent basis, DP World said in a statement.

Sultan Ahmed bin Sulayem, group chairman and CEO, DP World, said: “The Eurofos terminal is important to DP World’s long-term strategy as a leading Mediterranean port and we are excited to focus on unlocking the substantial growth prospects of Fos, which will add significant value for all our stakeholders.”