CHINA Merchants Port Holdings (CMPort) announced it would acquire a 50% stake in the Port of Newcastle from China Merchants Union (CMU) for $607.5m.
In a statement announcing the deal, CMPort said the acquisition was a first step towards investment in Oceania.
With the acquisition, the company also hopes to develop its “port-park-city” (PPC) model, which aims to develop industrial parks and associated infrastructure around ports.
“Given the unique position of the Port of Newcastle with precincts containing land resources, the acquisition will bring opportunities for the company to further achieve its ‘port and park’ development under the PPC model,” the statement read.
CMU is a substantial shareholder of CMPort, which is listed on the Hong Kong Stock Exchange (144:HK).
In September of last year, CMPort acquired a 90% stake in the Port of Paranaguá, the second largest port in Brazil, for about HK$7.2bn (roughly $1bn).
And, in July 2017, CMPort signed a 99-year concession agreement for Hambantota Port in Sri Lanka in which it agreed to invest up to US$1.12bn in the port.
Over the 2017 calendar year, CMPort handled a total container throughput of 102.9m TEU across its port businesses, an increase of 7.5% on the same period the previous year.