Global Ports acquires Russian NCC

The deal would be financed through a combination of cash, new shares representing approximately 18% of the enlarged share capital of Global Ports, and assumption of NCC debt.  The combined enterprise would have a value of approximately US$1.5bn.

The acquisition is subject to regulatory approval by the relevant authorities; however, there are questions in some quarters as to how easy this will be to obtain, based on the strong position both Global Ports and NCC Group currently have in the Russian market.

Ranked as Russia’s second largest container terminal operator by gross throughput, NCC Group had a market share of just over 21% in 2012; Global Ports commanded 30% market share.  In St Petersburg alone, each company enjoys a 43% share.