DP World buys Unifeeder for $764m

Dubai-based DP World said it bought Denmark-based Unifeeder Group for $764 million. (Reuters)
Updated 07 August 2018
0

DP World buys Unifeeder for $764m

  • Unifeeder deal to boost presence in global supply chain
  • Acquisition subject to approvals

DUBAI: DP World said it bought Denmark-based Unifeeder Group for $764 million.

It acquired the container and shortsea network from the Nordic Capital Fund and other shareholders, the Dubai-based ports operator said in a statement.
The Danish group reported reveunes of about €510 million last year.

DP World hopes the acquisition will boost its presence in the global supply chain and reduce inefficiencies.

“The ever growing deployment of ultra- large container vessels has made high-quality connectivity from hub terminals crucial for our customers and Unifeeder is a best-in-class logistics provider in this space with a strong reputation in Europe,” DP World Chairman Sultan Ahmed Bin Sulayem, said.

“Our aim is to leverage on the in-house expertise of Unifeeder and to accelerate growth in this scalable platform to deliver value for all stakeholders.”

DP World called Unifeeder “an important and growing” network in Europe serving both deep-sea hubs and other markets.

The port operator said that the sale is expected to close in the fourth quarter of this year.

DP World operates 80 terminals in over 40 countries and is majority owned by the government of Dubai.


World’s biggest sovereign fund worried about trade wars

Updated 21 August 2018
0

World’s biggest sovereign fund worried about trade wars

  • The fund posted a positive return of 1.8 percent, or 167 billion kroner ($19.8 billion), in the second quarter
  • Markets are worried about a trade dispute between the United States and China

OSLO: The managers of Norway’s sovereign wealth fund, the world’s biggest, expressed concern Tuesday about global trade tensions, which could heavily impact its value.
The fund posted a positive return of 1.8 percent, or 167 billion kroner ($19.8 billion), in the second quarter, helping erase a loss of 171 billion kroner in January-March that was attributed to a volatile stock market.
The Government Pension Fund Global, which saw its total value swell to 8.33 trillion kroner by the end of June, manages the country’s oil revenues in order to finance Norway’s generous welfare state when its oil and gas wells run dry.
But Norway’s central bank, which runs the fund, said geopolitical and trade tensions presented a risk.
“It’s fair to say that increased trade barriers or even trade wars will not be beneficial for the fund as a long-term global investor,” Trond Grande, the deputy chief of Norges Bank Investment Management, told reporters.
Markets are worried about a trade dispute between the United States and China. Accusing Beijing of unfair competition, the US administration is considering slapping a new round of levies worth $200 billion on Chinese goods.
Talks between the two slated for Wednesday and Thursday aimed at resolving the dispute have however eased concerns somewhat.
Following US-Turkey tensions that sent the Turkish lira and the Istanbul stock market tumbling, the Norwegian fund said its assets there were worth less than the 23 billion kroner they were at the beginning of the year.
“We’ve seen the market rise for a long time, that there are different political and geopolitical events in the world that can affect the market, and we have to be prepared for the fact that (the value of) the fund can go down a lot,” Grande concluded.
The fund’s strong second quarter was attributed primarily to its share portfolio, which accounts for 66.8 percent of its investments and which rose by 2.7 percent.
Real estate holdings, which account for 2.6 percent of its holdings, rose by 1.9 percent, while bond investments, which represent 30.6 percent, remained flat.
Faced with falling oil revenues in recent years, the Norwegian government has been tapping the fund to finance public spending since 2015. But with oil prices recovering, the fund registered its first inflow in three years in June.