Braemar buys British shipbroker ACM

[LONDON] Braemar Shipping Services will buy fellow British shipbroker ACM Shipping Group in the latest industry shake-up as players look to grow after years of freight market turmoil. In the biggest deal to date, Braemar, whose businesses include ship broking, said on Tuesday that it had agreed to acquire the entire share capital of ACM. "What this transaction is about is growing our shipbroking presence collectively," said Braemar chief executive James Kidwell.

Ship owners ordered large numbers of vessels between 2007 and 2009 just as the global economy sank into crisis, plunging the sector into one of its worst ever downturns. Prospects have brightened in recent months, with a pick-up in global trade helping to absorb the ship glut.

As sector conditions improve, many ship brokers view bigger scale operations with global teams as the best way to position themselves ahead of a full market recovery. "It appears we are past the worst of the cycle. It is certainly not a convincing recovery, and ship brokers are looking for ways to continue earnings growth," said Liberum analyst Gerald Khoo.