Dubai’s DP World in $500m deal to buy Chile port firm

Dubai’s DP World said it would offer $502 million for 100 percent equity ownership. (Reuters)
Updated 13 January 2019

Dubai’s DP World in $500m deal to buy Chile port firm

  • Pulogsa operates concession for Puerto Central in San Antonio and owns and operates Puerto Lirquen terminal
  • DP World is one of the world’s largest port operators

LONDON: The Dubai-based DP World is set to buy a 71.3 percent stake in the Chilean port services firm Puertos y Logistica, known as Pulogsa.

The move will give DP World exposure to several terminals in Chile, with Pulogsa holding a long-term concession for Puerto Central (PCE) in San Antonio, as well as owning and operating Puerto Lirquen (PLQ) terminal.

The Dubai port operator said it has entered into an agreement to acquire the stake from Minera Valparaiso and other shareholders associated with the Matte Group.

Under a tender process to acquire all outstanding shares of the business, DP World will offer $502 million in consideration for 100 percent equity ownership, according to a statement.

The acquisition will be financed from existing balance sheet resources, and is expected to close in the first half of 2019, the statement said.

Pulogsa, which is listed on the Santiago stock exchange, had net financial debt of $226 million as at Sept. 30, 2018, the statement added.

“We are delighted to extend our global footprint with a major entry into Chile, Latin America’s most developed economy, with attractive growth prospects and a dynamic business environment,” said DP World Group Chairman and CEO Sultan Ahmed bin Sulayem.

“These new assets will allow DP World to serve cargo owners and shipping lines at five key gateways on the west coast of South America.”

The PCE terminal, in San Antonio, is one of Chile’s largest container ports, with a capacity of over 1 million twenty-foot-equivalent units (TEUs), a standard measurement in shipping.

“PCE and PLQ are both ‘best in class’ terminals in their respective markets, with long-term operating rights, strong cargo diversification and significant capability for expansion. The overall value proposition for these terminals is compelling and the addition of capacity to our portfolio will help drive long-term value to all our stakeholders,” said Sulayem.


White House says Trump regrets not raising tariffs higher

US President Donald Trump arrives at the G7 summit in Biarritz, France, on Sunday. Trump had been trying to use the conference to rally global leaders to do more to stimulate their economies, as fears rise of a potential slowdown in the US ahead of his reelection. (AP)
Updated 43 min 6 sec ago

White House says Trump regrets not raising tariffs higher

  • President’s comments appear at first to mark a rare moment of self-reflection by the US leader

TOKYO: President Donald Trump said Sunday that he had second thoughts about escalating the trade war with China, but the White House later reversed that message saying the president was misinterpreted and that his only regret in hiking tariffs is that he didn’t raise them higher. Trump faced a tense reception from world leaders meeting amid mounting anxiety of a global economic slowdown at the Group of Seven summit in France. During a breakfast meeting with British Prime Minister Boris Johnson, Trump suggested he had qualms about the spiraling conflict. “Yeah. For sure,” Trump told reporters when asked if he has second thoughts about escalating the dispute, adding he has “second thoughts about everything.”
But hours later, White House press secretary Stephanie Grisham issued a statement saying Trump’s comments about US tariffs on China were “greatly misinterpreted.”
She said Trump only responded “in the affirmative — because he regrets not raising the tariffs higher.” The comments appeared at first to mark a rare moment of self-reflection by the famously hard-nosed leader. But the later reversal fit a pattern for Trump in recoiling from statements he believes suggest weakness.

HIGHLIGHTS

• President Donald Trump faced a tense reception from world leaders meeting amid mounting anxiety of a global economic slowdown at the Group of Seven summit in France.

• White House said comments about US tariffs on China were ‘greatly misinterpreted.’

Trump had been trying to use the conference to rally global leaders to do more to stimulate their economies, as fears rise of a potential slowdown in the US ahead of his reelection. Trump’s counterparts, including Johnson, are trying to convince him to back off his trade wars with China and other countries, which they see as contributing to the economic weakening.

US-Japan agreement
Trump and Japan’s Prime Minister Shinzo Abe announced on Sunday a deal in principle on a major bilateral trade deal.
“It’s a very big transaction,” Trump said after talks with Abe on the sidelines of the G7 summit.
“Billions and billions of dollars,” he said. “It involves agriculture, it involves e-commerce. It involves many things. We’ve agreed in principle.”

Amazon fires
Also on Sunday, French President Emmanuel Macron said that world leaders at the G7 summit have agreed to help the countries affected by the huge wildfires ravaging the Amazon rainforest as soon as possible.
“We are all agreed on helping those countries which have been hit by the fires as fast as possible,” he told journalists.