4.9 billion! The old logistics giant was sold for a sky-high price?

Middle Eastern port logistics giant AD Ports Group announced the acquisition of Spain-based logistics company Noatum, a global integrated logistics group with operations in 26 countries, for $680 million (about 4.9 billion yuan). AD Ports said the deal significantly expands its global reach and makes it one of the world's leading logistics and freight forwarding companies.

Founded in 1963, Noatum operates in three business areas, logistics, Marine and port terminals, with its market share mainly concentrated in Spain and Turkey, but also has operations in the United States, the United Kingdom, China and Southeast Asia.

Noatum's global logistics business focuses on integrated freight management, project logistics, contract logistics, international supply chain management, customs and electronic solutions, with offices around the world and an extensive network of agents.

According to AD Ports Group, Noatum has advanced capabilities in heavy cargo logistics, which the group hopes to introduce to the Middle East region. Noatum's terminal business consists of 15 ro-ro, dry bulk, general cargo and container terminal operations in Spain, while its maritime division provides freight forwarding and cargo services such as liquid bulk, bulk general cargo, refrigerated and dry bulk.

Recognizing Noatum's high growth potential and scale capabilities, the AD Ports Group intends to create a market-leading international logistics brand by combining its existing logistics business with Noatum to establish a significant presence in the Middle East and enhance its global offering. In the future, Noatum will lead the AD Ports Group's logistics cluster, integrating the Group's existing logistics services into its business.

"This acquisition makes AD Ports Group one of the most important global players in vehicle logistics, and we intend to expand this business in our home country and in our core markets." Falah Al Ahbabi, Chairman of AD Ports Group, said: "This ambitious acquisition brings AD Ports Group a major global logistics platform, significantly enhancing our global connectivity and, as we continue to pursue our determined growth strategy, It expands the range of Marine, logistics and port solutions we can offer."

"This historic acquisition will be one of the most significant in the industry this year." AD Ports Group Managing Director and Group CEO Mohamed Al Shamisi said.

Subject to regulatory approval, the transaction is expected to close in the first half of 2023.

The deal marks AD Ports Group's third major international acquisition this year. This follows the group's acquisition of a 70 per cent stake in Feeder Shipping company Transmar and terminal operator TCI in September, and the acquisition of an 80 per cent stake in Dubai-based feeder liner Global Feeder Shipping(GFS) earlier this month