Abu Dhabi Ports makes acquisition to further global expansion

ABU Dhabi Ports Group (AD Ports) has purchased Spanish logistics firm Noatum for US$680 million, its second acquisition this month, as it looks to expand globally.

For AD Ports, which has 10 facilities in the United Arab Emirates, the deal offers exposure to maritime and logistics activities in the Mediterranean, as well as port facilities in Spain, the group said on Friday (Nov 18). Noatum also has a presence in Turkey, the US, the UK, China, and South-east Asia.

The acquisition comes after AD Ports, controlled by Abu Dhabi sovereign wealth fund ADQ, bought 80 per cent of Dubai-based Global Feeder Shipping for US$800 million earlier this month. The expansion echoes that of Dubai’s DP World, one of the largest port operators, which last year announced a string of deals in a bid to become a more diversified and integrated logistics company.

“We will leverage the acquisition of Noatum to build a strong international logistics brand with deep roots in this region,” the group’s chief executive officer Mohamed Juma Al Shamisi said.

Financial advisory firm Rothschild & Co advised AD Ports on the transaction, which will be funded through a new loan.

The group handled a record 45 million tonnes of general cargo volumes last year, up 50 per cent from the previous year. In January, it raised US$1.1 billion in an initial public offering. BLOOMBERG