Danish ferry operator to buy local freight operator

DANISH shipping company DFDS reached a deal with Turkey’s U.N. RoRo, the largest local freight shipping operator, to purchase 98.9 percent of the company for 950 million euros, which will be funded with debt financing.

DANISH shipping company DFDS yesterday agreed to acquire a 98.8 percent stake in U.N. Ro-Ro, Turkey’s largest operator of freight-shipping routes in the Mediterranean, connecting it with Italy and France.

“DFDS will acquire U.N. Ro-Ro for 950 million euros on a debt-free basis, which will be mainly funded through committed debt financing,” the Danish company announced in a statement.

The transaction is expected to be closed in June 2018 after approvals from the Turkish, Austrian and German competition regulators as well as Italian authorities, in relation to the transfer of the Trieste terminal as a strategic asset, the statement said.

“The acquisition expands DFDS’ route network to include the fast growing trans- port market between Turkey and EU,” it added.

“The operation of Ro-Ro ships and operation of port terminals handling a high number of unaccompanied trailer units and containers for reloading to rail transport in the ports are very similar to DFDS’ business in the North Sea. So are the goods transported - machinery, automotive parts, vehicles, electronics, computers, plastic products, textiles, clothing, food, fruit, beverages and other,” said DFDS chief executive Niels Smedegaard.

DFDS is even familiar with the ships as they were all built at the Flensburg Shipyard in Germany, where DFDS has also been building modern ships of similar design, he said.

“U.N. Ro-Ro is a highly profitable company, and we are confident that joining forc- es will create new exciting opportunities to leverage our network, fleet, experience, and skills to develop the business further while supporting the growth of U.N. Ro-Ro’s customers,” Smedegaard added.

CEO of U.N. Ro-Ro Selçuk Boztepe said that know-how, combined with the network capabilities and financial strength of DFDS will help them enhance the competitiveness of Turkish exporters and international logistics companies.

“The experience of DFDS, expansive network and financial strength will enable U.N. Ro-Ro to continue adding value to Turkish exporters and logistics companies,” Boztepe said.

U.N. Ro-Ro operates five major routes between Turkey and the European Union, connecting the Turkish ports of Pendik, Ambarlı and Mersin with Trieste and Bari in Italy, Toulon in France and Patras in Greece.

The company operates and owns a fleet of 12 large Ro-Ro ships and operates port terminals in Pendik, Istanbul and Trieste in Italy.

In cooperation with rail operators, U.N. Ro-Ro also offers intermodal transport between key EU markets and the ports.

The company carried 202,000 freight units in 2017, corresponding to a 34 percent of the total market including land transport, according to DFDS.

“U.N. Ro-Ro is highly profitable and the leading operator with a market share twice that of the next competitor in Turkey,” the statement noted.

The statement added that the acquisition was expected to be earnings accretive from the first year.