RIYADH: National Shipping Co. of Saudi Arabia, better known as Bahri, has announced its business unit has entered into a sales and purchase agreement with Bolloré Logistics to acquire 40 percent of the share capital of their joint venture, Bahri Bolloré Logistics.
According to a press release, Bahri Bolloré Logistics will become a wholly owned subsidiary of Bahri and will be renamed Bahri Logistics after the proposed transaction.
“Since its establishment in 2017, Bahri Bolloré Logistics has grown into a strong player in freight forwarding services, building on the unique strengths of Bahri and Bolloré,” said Ahmed Ali Alsubaey, CEO of Bahri.
He added: “We are pleased that the signing of the agreement to acquire our remaining stake in the company will pave the way for greater integration and help realize synergies. Furthermore, the joint venture’s transition to a fully owned subsidiary under Bahri Logistics marks the start of the next phase of its growth and expansion.”
The press release further added that Bahri Logistics and Bolloré Logistics will continue their partnership under a global agency agreement to continue serving existing and future clients.
Bahri Bolloré Logistics is headquartered in Riyadh, and offers integrated global logistics and supply chain management services for local and international firms operating in Saudi Arabia. The company also runs a container yard and offers value-added warehousing services in Jeddah.
In October, it was reported that Bahri saw its profit surge 360.67 percent during the first nine months of 2022, following a revenue jump to SR5.8 billion ($1.5 billion).
The firm, which is a joint venture between Saudi Arabia’s Public Investment Fund and Saudi Aramco, made profits of SR463 million, up from SR100 million a year ago, a bourse filing showed.