Grindrod to Acquire Stake in Mozambican Terminal for $79.6 Million

Grindrod Mauritius, a subsidiary of the South African logistics and transport giant plans to acquire the remaining 35% ownership in Terminal de Carvão da Matola Limitada (TCM) at the Port of Maputo. This acquisition, valued at $79.6 million (R1.4 billion), will strengthen Grindrod’s position in this critical logistical center.

The purchase, announced on Wednesday, is expected to be completed within the next 12 months, subject to regulatory approvals such as clearance from antitrust regulators and tax permits from the Mozambican government. The transaction also includes a new nine-year throughput deal with Vitol Coal South Africa, which will replace the existing contract. This arrangement includes an initial allocation of 2.25 million tons per year.

TCM runs a dry bulk port at the Port of Maputo with an annual capacity of around 7 million tonnes, primarily handling magnetite and coal. The facility is crucial to Grindrod’s logistics network, connecting rail and road freight with global shipping routes. The terminal’s sub-concession falls within the Maputo Port Development Company’s larger port lease.

Grindrod sees TCM as a vital strategic asset that aligns with its long-term goal of offering integrated logistics services along the Maputo corridor. The business said: “This acquisition enables us to offer cost-effective and efficient logistics solutions for cargo, unlocking value for our customers throughout the region.”

Grindrod Limited, founded in 1910, has expanded into a global leader in logistics, shipping, and financial services. Grindrod operates in 21 countries and is listed on the Johannesburg Stock Exchange. It has a diverse portfolio of subsidiaries, joint partnerships, and affiliates. Over the years, the organization has used its tenacity and vision to grow from humble beginnings to an international powerhouse.

Grindrod Bank was sold to African Bank in 2022 and is no longer part of Grindrod Limited. Remgo disposed of its shares in Grindrod in 2022.

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