AD Ports Group acquires an 80% equity stake in Global Feeder Shipping (GFS), a global container shipping company. The total purchase consideration for the 80% stake is AED 2.9 billion, which amounts to almost $790 million.

AD Ports Group is looking to integrate GFS into its Maritime Cluster, which offers a portfolio of shipping, offshore and subsea services.

The acquisition will boost AD Ports Group’s hub and spoke model by linking core markets in the Gulf, Indian Subcontinent, Red Sea, and Turkey to its key port assets including Khalifa Port. The transaction is still subject to regulatory approvals and is expected to close in the first quarter of 2023.

“This is a key moment for GFS, which sees our company become part of AD Ports Group to create the largest single provider of shipping services in the region. I am truly proud of what our team has achieved and excited for the future, which will see us continue expanding our global footprint. Our priority has always been to continuously improve our systems and processes to serve global trade, and under the ownership of AD Ports Group we will be able to deliver a new level of service and support for international customers.”

Citi acted as the financial advisor and A&O as the legal advisor while Roland Berger completed the commercial due diligence and KPMG the financial and tax due diligence for this transaction.