DP World-owned Imperial received approval to acquire a 100 per cent stake in Mozambique-based logistics company J&J Group, boosting its position in the lucrative African market.
The acquisition of the first tranche of shares amounting to 51 per cent of the J&J Group, which was first announced in July 2021, closed on July 18, DP World said on Tuesday.
This will be followed by the acquisition of second and third tranches of 46.5 per cent and 2.5 per cent respectively, the port operator said.
J&J Group operates transport and logistics services in Mozambique, Zimbabwe, Zambia, Malawi, South Africa and the Democratic Republic of Congo, according to its website.
“This acquisition strengthens DP World’s position in Africa as an end-to-end logistics provider, by adding J&J’s significant presence along these key corridors in Africa — a market where trade is expected to grow at more than twice the GDP [gross domestic product], driven by population growth, accelerated urbanisation and rising middle classes,” said DP World group chairman and chief executive Sultan bin Sulayem.
DP World is one of the world’s biggest operators of marine ports and inland cargo terminals, with gateways in Africa, European countries such as the UK, Belgium and Russia, the Asian nation of India and the Americas.
The Dubai-based company has been on an acquisition spree as it attempts to become a more diversified and integrated logistics company.
It has been building its presence across Africa and, in February, concluded its acquisition of South Africa’s Imperial Logistics.
Imperial said the acquisition of J&J Group complements its strategy to become a gateway to Africa.
“It optimises and expands our reach in Africa by providing scale in end-to-end cross-border transportation services in key countries and new industries,” said Mohammed Akoojee, chief operating officer of DP World Logistics and group chief executive at Imperial.
“This is possible through well-established routes, port capabilities, a well-developed asset base, including a fleet and warehousing space, as well as an entrenched customer portfolio.”
Earlier this month, Imperial acquired a controlling stake in Africa FMCG Distribution in Nigeria as the global ports operator continues to expand its footprint across the continent.
