AD Ports Group completes acquisition of Spain’s Noatum

UAE’s AD Ports Group said it has completed the acquisition of Spain-based logistics services provider Noatum in a deal valued at $722m (Dhs2.65bn) as the Abu Dhabi-listed logistics giant looks to expand globally.

Noatum will assume leadership of AD Ports’ Logistics Cluster, with the process of integrating its businesses and team of 2,800 professionals into the cluster’s operations commencing immediately. The Abu Dhabi logistics giant said the full consolidation of Noatum started on the day of the closing of the deal, June 30.

The landmark acquisition brings together two major industry players to form a global powerhouse in the trade and logistics industry. The deal was closed after the company received regulatory approvals from Spanish authorities and clearance from the European Commission earlier in the year.

“We look forward to leveraging our integrated cross-Cluster business model and working together to unlock unprecedented value for our respective customers, partners and stakeholders,” Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports Group said, adding that the acquisition aligns seamlessly with the company’s long-term growth strategy.

“The future of trade and logistics relies on integration, resilience and innovation, and by taking this transformative step together we are charting a path to realising our collective mission of becoming one of the top global trade and logistics providers.”

AD Ports buys Noatum

The Noatum deal, which was made in November 2022, offers AD Ports exposure to maritime and logistics activities in the Mediterranean as well as port facilities in Spain. Noatum also has a presence across Europe, Asia, Africa, North America and South America.

“Noatum operates a comprehensive portfolio of trade and logistics services, with a presence in 26 countries, alongside a comprehensive network of its 143 international offices,” said in a statement.

We have completed our landmark acquisition of Noatum after receiving full regulatory approvals. This investment expands our presence into all major global markets and delivers on our strategy to become a leading global logistics provider. https://t.co/29KenOF8xL pic.twitter.com/nV8j7CiuQj

— AD Ports Group (@ADPortsGroup) July 2, 2023

The Spanish firm’s maritime business offers shipping agency services, inclusive of outsourcing, ancillary, and cargo solutions such as liquid bulk, breakbulk cargo, reefer, and dry cargo, while its ports business includes bulk, container, reefer, ro-ro and multi-purpose terminal operations located across 16 ports in Spain and the UAE together with dedicated depots and warehouses.

AD Ports expects the acquisition of Noatum to generate several important synergies, including revenue enhancement, cost savings, joined purchasing, transfer of best practices, market expertise and adoption of cutting-edge technology.

AD Ports grows portfolio

Meanwhile, the completion of the Noatum deal follows a string of deals and agreements as AD Ports seeks to become a more diversified, integrated logistics company.

Last month, the ports operator signed a 50-year concession agreement with Karachi Port Trust to operate and develop the Karachi Gateway Terminal, berths 6 to 9 at Karachi Port. The shipping and logistics group also signed a 30-year concession agreement worth $200m to develop, manage and operate the Egyptian multi-purpose terminal in the Red Sea port of Safaga.

The terminal will be developed over an approximate area of 810,000 square meters and is set to be operational in Q2 2025. It will boast a quay wall of up to 1,000 meters and it will have the capacity to handle 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450K TEUs of containerised cargo, and 50K CEUs of RORO.

AD Ports, controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi along with other ports and logistics parks in the city and the Indian Ocean Fujairah port.

Over the past half-decade, the UAE has risen into the upper echelons of the global maritime industry as the Gulf state has evolved into a key logistics hub.

Read: UAE’s AD Ports signs 50-year concession deal with Karachi Port Trust