AD Ports enters South America as Dh3.1 billion Brazil deal stands complete

Dubai: AD Ports Group has completed its Dh3.1 billion ($835 million) acquisition of Brazilian agri-bulk port operator Corredor Logística e Infraestrutura (CLI) after receiving regulatory and antitrust approvals. This marks the Abu Dhabi-based group's first strategic entry into South America.

The acquisition, which was announced in June, is the largest in AD Ports Group's history. The group has now assumed operational control of CLI through its international ports operating arm, Noatum Ports. This comes on the back of approvals from Brazil's National Waterway Transportation Agency (ANTAQ) and the Administrative Council for Economic Defense (CADE).

CLI operates two major agricultural export terminals under long-term concessions at Brazil's Ports of Santos and Itaqui, handling commodities including sugar, corn and soybeans.

"The formal completion of the CLI acquisition marks an important development in AD Ports Group's international growth and strengthens our presence in one of the world's most important agricultural export markets," said Mohammed Al Tamimi, chief executive officer of Noatum Ports at AD Ports Group.

AD Ports said the acquisition will strengthen its growing agrifoods business and create opportunities to connect Brazilian agricultural exports with its wider network of ports, shipping and logistics assets.

The group plans to establish new direct trade routes between Brazil, Khalifa Port and Abu Dhabi Food Hub in KEZAD, potentially creating a new logistics link for Brazilian agricultural commodities into the UAE and other international markets.

CLI's Sul terminal at the Port of Santos is a major sugar export facility that also handles corn and soybeans. Its Norte terminal at the Port of Itaqui forms part of Brazil's "Arc of the North", a key logistics corridor connecting agricultural production regions in the country's interior with export markets.

Fernando Lohmann, head of Macquarie Asset Management in Brazil, said CLI had built "a highly competitive position in Brazil's port and logistics market", supported by strategic assets, operational scale and a resilient customer base.

"AD Ports Group is well positioned to build on that platform, which has clear relevance to Brazil's trade flows, and support CLI's next phase of development," Lohmann said.

AD Ports Group operates across ports, maritime and shipping, logistics, economic cities and digital trade services. The group has expanded its international footprint in recent years through acquisitions and investments across key trade and logistics markets.

The CLI transaction gives it a direct operating presence in Brazil, one of the world's major agricultural commodity exporters, while adding export infrastructure at two strategically important ports.

AD Ports said it would use its international network and expertise to support the continued development of CLI while building trade links between South America, the Indian Subcontinent, East Africa and Southeast Asia.

The company said the transaction would also support the development of more resilient supply chains connecting Brazilian agricultural production with global markets.