By Lukas I. Alpert
MOSCOW--APM Terminals, the port-operating arm of Danish
industrial group A.P. Moller-Maersk A/S (MAERSK-B.KO), said Monday
that it has acquired a stake worth $860 million in Russia's Global
Ports (GLPR.LN), in the largest ever private, foreign investment in
the Russian port sector.
Under the terms of the deal, Netherlands-headquartered APM is
buying 50% of private transportation group N-Trans's stake in the
Russian port operator, leaving both sides with 37.5% of the
company. The remaining 25% of the company is publicly traded as
global depositary receipts in London.
The acquisition values Global Ports' share capital at $2.3
billion, the company said, making the deal worth approximately $860
million.
The deal comes just weeks after Russia formally joined the World
Trade Organization, which both companies said made joining forces
more attractive.
"We regard Russia as a long term growth market for container
trade and believe the WTO accession will further accelerate trade,"
said APM Terminal Chief Executive Kim Fejfer.
Global Ports says it controls 30% of overall container volume in
Russia and 23% of the former Soviet Union fuel oil export market.
It operates facilities in St. Petersburg, Vladivostok, Muuga,
Estonia and Helsinki.
"The partnership with APM Terminals will give us global
expertise in port development and combined with our understanding
of regional markets, gives us a great opportunity to expand our
development in the region," said Global Ports Chairman Nikita
Mishin.
The deal is expected to be completed by the end of the year, the
companies said.
Write to Lukas I. Alpert at lukas.alpert@dowjones.com