Dubai ports operator DP World has announced its first acquisition under a $3bn joint venture with India’s National Investment and Infrastructure Fund and the purchase of a 50 per cent stake in a Peruvian logistics company.
The firm said its Hindustan Infralog Private Limited venture, formed in January, acquired a 90 per cent stake in Indian logistics firm Continental Warehousing Corporation.
The purchase was for a consideration below 5 per cent of DP World’s net asset value last year, according to the announcement.
The remaining 10 per cent of Continental will continue to be held by its founders the Reddy family, who will remain involved in business operations.
The Indian logistics player provides warehousing, container freight stations, inland container depots, private freight terminals and integrated logistics solutions, according to the announcement.
It also offers door-to-door logistics and freight forwarding through its Delex Cargo India subsidiary.
In total Continental’s network spans 400 acres and provides 660,000 twenty-foot equivalent units of capacity in the country.
DP World operates from six ports and other locations in India and manages a system of container trains.
“The acquisition of Continental Warehousing Corporation provides us with a scalable platform to accelerate growth in the rapidly evolving logistics sector in India,” said DP World group chairman and CEO Sultan bin Sulayem.
“We look forward to actively collaborating with the Reddy family, our partners in Continental Warehousing Corporation, to drive and realise the Company’s growth.”
The company also acquired a 50 per cent stake in Peru’s Cosmos Agencia Maritima, which owns logistics service businesses Neptunia and Triton Transport and a 50 per cent stake in Peru’s second largest container terminal Terminales Portuários Euroandinos, for $315.7m.
DP World said the deal would expand its presence in Peru, where it already operates the Callao container terminal.