Brookfield buys Australian freight firm Asciano for $6.6 billion
Brookfield Infrastructure has announced an agreement to buy Australian rail and port company Asciano f...
Brookfield Infrastructure has announced an agreement to buy Australian rail and port company Asciano for $.6.6 billion, the latest deal in the logistics industry’s recent mergers and acquisition boom.
The transaction is the Canadian asset manager's largest takeover, adding Asciano's Australian container terminals with Brookfield's hubs in North America and Europe.
Asciano's rail operations also pair well with Brookfield's Australian and Brazilian logistics businesses, according to Brookfield management. Brookfield itself is investing approximately $2.8 billion to buy Asciano. Its institutional partners are investing the remaining amount.
Sam Pollock, Chief Executive Officer of Brookfield Infrastructure, said: “This transaction enables us to acquire premier transport infrastructure assets in a geography we know well and establish two leading global platforms, with solid long-term prospects.
“Combining Asciano’s Australian container terminals with our existing assets in North America and Europe provides the foundation for a global container platform. In addition, Asciano’s leading above-rail operations, together with our Australian and Brazilian logistics businesses, create a powerful, international rail logistics business.”
- Brookfield Infrastructure to invest US$2.8 billion for an approximate 55% stake
- Transaction will establish a leading global rail, port and logistics business
- Fully funded transaction expected to deliver accretive FFO and AFFO per unit; preserving balance sheet strength; and
- Brookfield Infrastructure has received in-principle approval for a listing of its units on the ASX Limited, Australia’s securities exchange (“ASX”).
The combination of Brookfield Infrastructure and Asciano will create a leading global rail, port and logistics business. Asciano’s business is comprised of a unique network of port and rail assets in Australia that include: container terminal operations in major Australian cities including Sydney, Melbourne, Brisbane and Perth that have a capacity of approximately 4.9 million TEUs; port, terminal and supply chain services that support shipping lines, importers, exporters, freight forwarders and customs brokers; andnationwide above rail haulage operations with assets consisting of 664 locomotives and over 14,000 wagons which have the capacity to haul 180 million tonnes of freight and are diversified across mineral and bulk haulage, steel and intermodal.
Asciano Chairman Malcolm Broomhead said: “We are pleased to recommend to our shareholders this compelling transaction with Brookfield Infrastructure. Asciano’s businesses are unique and highly strategic. Pacific National is one of the largest providers of above rail freight haulage services in Australia. Patrick is a leading business in bulk ports and stevedoring, with a presence in over 40 sites in Australia and New Zealand."
“The primary focus of the Asciano Board has always been, and continues to be, to act in the best interests of shareholders and maximise shareholder value. After careful consideration of all the options available to the Company, the Asciano Board has unanimously concluded that a sale of the Company at a significant premium to market value, and on terms that we think reflect fair value, is in the best interests of all shareholders.”
It is anticipated that Asciano shareholder approval will be sought at a meeting to be held in mid-November 2015, and that the merger will be completed prior to year-end, subject to the various regulatory approvals referred to above.
For more information, please visit Brookfield Infrastructure’s website atwww.brookfieldinfrastructure.com.
Kuehne+Nagel cuts carbon footprint by 70% for Honda China
Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel.
The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018.
KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management.
"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.
After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total.
"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”
Kuehne+Nagel’s Net Zero Carbon programme
Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners.
Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”.
As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030.