Shipping Terminals and ships coveted by investors according to study
According to a study, container terminals and ships continue to be sought after as investments by investors. In the first half of the year, there were 86 takeovers and mergers in the transport and logistics sector, according to a study by auditors PWC.
30.07.2024, 06:48
SDA
For strategic investors such as companies, such financial investments are essential in order to maintain supply chains, according to the semi-annual study by auditors PWC on takeovers and mergers in the global transportation and logistics sector.
According to the study, the mergers and acquisitions involved deals with a value of at least 50 million US dollars. This is twelve fewer takeovers and mergers than in the first half of 2023 and, according to PWC, the lowest level in the past ten years.
"Economic uncertainties, volatile market conditions, persistently high inflation and new regulatory requirements are putting logistics companies under pressure," said study co-author Ingo Bauer. Companies therefore need to reduce costs and increase efficiency.
Air freight sector benefits
The Houthi attacks in the Red Sea continue to affect container shipping, the authors write. Shipping companies are therefore avoiding the journey through the Red Sea and instead using the longer route around the southern tip of Africa, the Cape of Good Hope. This leads to delays. Freight rates have risen significantly, according to the "Transport & Logistics Barometer".
The air freight sector is benefiting from the disruption to shipping. The transportation of air freight increased worldwide in the first three months of the year. Online trade and demand for special freight such as lithium batteries also contributed to this. By contrast, demand for road freight transport was weak at the beginning of the year. Companies were also confronted with rising operating costs.
Twelve "megadeals"
So-called megadeals were still comparatively rare, although there was an increase here. The authors define a "megadeal" as a takeover or merger with a value of more than one billion US dollars. There were twelve such "megadeals" in the first half of the year. There were five in the same period last year. One reason for the increase is the continuing demand for infrastructure, for which investors paid high prices.
One of the "megadeals" reportedly took place in Hungary, where the state acquired a majority stake in Budapest Airport, as was announced in June. The country's Ministry of Economy quoted the purchase price at 3.1 billion euros.
PwC expert Bauer said that he expects a "revival" in takeovers and mergers in the second half of the year. "Also because the easing inflationary pressure and the prospect of interest rate cuts will create a more favorable environment for financial investors."
