AD Ports Group Acquires CLI in $835M Brazil Deal

Abu Dhabi's AD Ports Group has executed its largest-ever acquisition, securing a controlling stake in Brazil's CLI (Corredor Logística e Infraestrutura) for $835 million. This strategic move marks the Emirati giant's significant debut into the Latin American market, specifically targeting Brazil's vital agricultural export terminals.

The transaction, which sees IG4 Capital and Macquarie Asset Management divest their controlling interest in CLI, encompasses key grain and sugar handling facilities at the ports of Santos and Itaqui. CLI itself managed 17 million tons of bulk agricultural cargo in the prior year, generating approximately $178 million in revenue and an EBITDA of $98 million. This acquisition also indirectly brings CLI Sul, in which CLI holds an 80% stake, under AD Ports' umbrella.

This expansion into Brazil is a cornerstone of AD Ports' global agrifood strategy. The company aims to leverage Brazil's dominant position in global sugar exports and the strategic importance of its port infrastructure. Plans are already underway to establish new trade routes connecting Brazilian operations to AD Ports' existing hubs, including Khalifa Port and the Abu Dhabi Food Hub, thereby creating a crucial East-West commercial artery linking to markets across India, East Africa, and Southeast Asia.

The deal underscores a broader trend of international infrastructure players seeking robust, high-volume logistics assets in emerging markets. Brazil's agricultural sector, a powerhouse in global food production, presents a compelling case for investment, particularly given the structural constraints and high demand at major ports like Santos, which faces limited expansion capacity and chronic congestion. These factors are expected to support sustained utilization and pricing power for CLI's terminals.

For AD Ports Group, a company valued at approximately $6.2 billion on the Abu Dhabi Stock Exchange and reporting revenues of around $5.7 billion in the last fiscal year, this acquisition represents a significant diversification and internationalization milestone. The group, backed by the Abu Dhabi government's sovereign wealth fund, operates a substantial portfolio of 38 terminals and manages extensive economic zones.

This move follows a series of recent international investments by AD Ports in agricultural bulk logistics. The company recently agreed to develop agricultural logistics infrastructure at Pakistan's Port of Karachi and announced a $30 million investment in a grain terminal at Kazakhstan's Port of Kuryk. The acquisition of CLI is subject to customary closing conditions, including approvals from Brazil's regulatory bodies, Cade and Antaq.