Chinese giant is close to close purchase of TCP slice for $1 bi

The State-owned China Merchants is in advanced talks to purchase Container Terminal of Paranaguá (TCP), in Paraná. The active, which is controlled by the American Fund Advent, went on sale last year, as anticipated. The value of the transaction, for the participation of the Advent of 50% in the company, is about $1 billion, according to sources familiar with the matter.
The original idea was to open the TCP''s capital or sell just a slice to private investors, but the good demand for business led the drivers to review this strategy. The company was also in talks with the Arab Group Dubai Port World (DP World), partner at Odebrecht in Embraport, in Santos. Negotiations with the company, however, have cooled, said a source familiar with the subject (DP World negotiates the purchase of Odebrecht in terminal santista).
"The Chinese group showed more interest in the business, and the conversations became more intense," said a source. At the time, TCP and Chinese transport giant are hitting the last details to sign a binding agreement, said another source familiar with the matter. Last year, the TCP hired the Bank BTG Pactual and Morgan Stanley to advise it in the negotiations. The China Merchants group hired banco Santander.
The Asian giant is the largest investor and operator of highways in China, with 8,147 km of roads, bridges and tunnels in 18 provinces. In addition, has 31 port terminals spread across 18 countries. In Brazil, TCP would be your premiere for future business in an area lacking in investment, the transport infrastructure.
The terminal is considered one of the most modern in the country and has good potential for growth. In recent years, has received high investments in the renewal of equipment and on local infrastructure, which significantly improved the productivity of the company. In 2015, moved 815,600 TEUs (unit equivalent to a 20 feet container).
Today, TCP is the third largest container terminal in the country, behind only Brazil and Brazil Santos Port Terminal (BTP), both in the port of Santos. The terminal also holds the largest number of outlets refeer-required for infrastructure maintenance of containers of refrigerated products, such as meat-of the country.
The terminal control was acquired in 2011 by Advent, for $500 million. In addition, TCP has as a partner the APM Terminals, another heavyweight of the world container transport in the giant Maersk.
Acquisitions. Despite putting the terminal for sale, in recent months the American Manager has been aggressive in acquisitions. In December, he bought the chemical distributor quantiQ, which belonged to Braskem, and College Cesuca Rio Grande do Sul. In March, announced the purchase of a piece of Easynvest broker.
The Fund also is touted as the favorite to buy the generic German lab, which has the American multinational Pfizer as a partner. The Manager is still in advanced talks to open the capital of Biotoscana, which in Brazil pharmaceutical controls United Medical.
Sought, the Advent and the TCP had no comment on the negotiations involving the terminal. Already the China Merchant and DP World did not return requests for interviews.