Status:  Upcoming/New Filing

Acquirer:  EQT Infrastructure III (Luxembourg)

Acquired:  Global Gateway South Terminal (U.S.)

Value:  Approx. US$875 million

Industry:  Infrastructure; Port Services

On June 30, 2017, CMA CGM, a French shipping group, “signed an agreement with EQT Infrastructure III, (“EQT Infrastructure”), and its partner P5 Infrastructure (“P5”),  pursuant to which EQT Infrastructure will acquire a 90% interest in the Global Gateway South (“GGS”) terminal in Los Angeles (USA) for an enterprise value of USD 875 million.”  (CMA CGM Press Release, CMA CGM Signs a Binding Agreement for the Sale of a 90% Equity Interest in Global Gateway South Terminal in Los Angeles (USA) for a Cash Consideration of $817m, July 3, 2017; EQT Infrastructure Press Release, EQT Infrastructure to Acquire Majority Interest in Global Gateway South Terminal in Port of Los Angeles, July 3, 2017.)  EQT Infrastructure is a Luxembourg-based investment fund, and P5 Infrastructure LLC is a port operating firm that, based on limited public information, appears to be a Delaware registered company with operations based in New York.  (EQT Infrastructure Press Release, EQT Infrastructure to Acquire Majority Interest in Global Gateway South Terminal in Port of Los Angeles, July 3, 2017; OpenCorporates P5 Infrastructure LLC registration information, visited July 13, 2017.)  “EQT Infrastructure and P5 have developed a plan to transform GGS from an asset operated as a cost center, into a leading North American terminal in terms of capacity and efficiency. The strategy includes significant capital investments in cranes, other handling equipment and technology to increase capacity and efficiency.”  (EQT Infrastructure Press Release, EQT Infrastructure to Acquire Majority Interest in Global Gateway South Terminal in Port of Los Angeles, July 3, 2017.) “Closing of the transaction is subject to anti-trust and regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS), and is expected to occur by end of 2017.”  (CMA CGM Press Release, CMA CGM Signs a Binding Agreement for the Sale of a 90% Equity Interest in Global Gateway South Terminal in Los Angeles.)

EQT Infrastructure is presently involved in another CFIUS filing for the potential acquisition of Lumos Networks Corp.  See blog post discussing this here.