Abu Dhabi’s Mubadala completes Loscam deal with a 30% stake

The transaction marks the company’s first co-control investment in Asia’s industrial sector

Abu Dhabi’s Mubadala Investment Company continues to boost its investments around the world. Victor Besa / The National

Abu Dhabi’s Mubadala Investment Company has completed a deal to buy a 30 per cent stake in Hong Kong-based logistics solutions provider Loscom International to boost its investments in Asia.

The deal, announced in July, marks Mubadala’s first co-control investment in Asia’s industrial sector, it said in a statement on Wednesday. The total value of the deal was not disclosed.

Following the completion of the transaction, Mubadala joins other investors in the company including Trustar International which also holds 30 per cent stake, with FountainVest and Sinotrans having a stake of 20 per cent each.

“We see strong potential in Loscam, particularly in Greater China and South-East Asia, where pallet pooling remains underpenetrated,” said Mohamed Albadr, head of Asia at Mubadala.

“This investment reflects our long-term commitment to Asia and our focus on scaling across high-conviction sectors with leading local partners.”

Loscom, set up in 1942, provides pallet pooling and logistics solutions to clients in fast moving consumer goods, retail and manufacturing sectors. It operates across 13 regions in the Asia Pacific including Australia, New Zealand, South-East Asia and Greater China.

The company provides wooden pallets as well as plastic pallets and fresh produce crates for transport and storage of goods, according to its website.

The global pallet market was valued at approximately $72.1 billion in 2024 and is projected to grow to $108 billion by 2033, driven by demand from e-commerce, manufacturing, and logistics, according to Infinity Market Research.

“The internationalisation and diversification at the shareholder level will entitle the company (Loscam) with a broader global perspective, advanced capital connections, and enhanced innovative momentum,” Li Shichu, vice president of Sinotrans, said.

The investment “will better enable Loscam to expand its global presence and continue to shape a new co-operation paradigm in the logistics packaging equipment sector”.

Mubadala, which invests on behalf of the Abu Dhabi government, is at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.

Its interests span six continents and include the aerospace, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals sectors.

Mubadala was ranked as the world’s top sovereign investor in 2024 by Global SWF.

Mubadala’s total assets under management in 2024 grew 9.5 per cent last year to reach Dh1.2 trillion ($330 billion), the company said in its annual report in May.

Mubadala’s deals in Asia last year include acquisition of UCB Pharma’s China unit in partnership with CBC Group. It also made investment in Indian non-banking financial company Avanse Financial Services to boost its presence in Asia’s second largest economy.