Post Date : July 8, 2021
Logistics major DP World is planning to acquire South Africa’s Imperial Logistics Ltd for $890 million, one of DP World’s most significant acquisitions in Africa so far. DP World is interested in acquiring Imperial and all its businesses to expand its logistics footprint in Africa and Europe. Imperial’s Logistics International business is within the scope of the offer and as such will not be sold separately under this proposed offer.
This transaction will be value-enhancing for Imperial as our business will benefit from DP World’s leading technology, global networks and key trade-lane volumes while enabling us to build on our ‘Gateway to Africa’ strategic and growth ambitions. Our Logistics International business and operations are also aligned with DP World’s strategic expansion plans on the European continent. Combining DP World’s world-class infrastructure, specifically its investment and expertise in ports on the African and European continents, with Imperial’s logistics and market access platforms will enable us to offer integrated end-to-end solutions along key trade lanes into and out of Africa and accelerate our position in Europe, driving greater supply chain efficiencies and ultimately enhancing value for all stakeholders.”~ Mohammed Akoojee, Group CEO of Imperial
DP World and its subsidiaries employ over 50,000 people across its worldwide operations. DP World strives to drive economic growth by creating more efficient supply chains, connecting markets, and offering innovative solutions to cargo owners while ensuring a positive and sustainable impact on societies and the planet. DP World is focused on driving sustainable growth prioritising practices that positively impact the people, communities, and environment in which it operates.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are excited to announce the proposed acquisition of Imperial, which will add significant strategic value to DP World given its attractive footprint and strong logistics solutions capability. Imperial has a significant presence in Africa, a market where trade is expected to grow at more than 2x GDP driven by population growth, accelerated urbanisation and rising middle classes. Imperial’s business strongly complements DP World’s existing footprint in Africa and Europe and will allow us to deliver a fully integrated end-to-end solution to cargo owners across a wider market.”
This transaction is still subject to Imperial shareholder approval and other customary completion conditions, including regulatory approvals. If media reports are to be believed, the deal is expected to close by the first quarter of 2022.