Cargo Business Newswire

Tuesday, July 28, 2015

MSC Rail buys cargo rail firm from Portugal

MSC Rail, an arm of shipping giant Mediterranean Shipping Company, has won the bid to buy the cargo division of Portugal's railway firm CP Carga with an offer of $58.14 million, according to the government.

Most of the funds will be used to capitalize the debt-laden CP Carga, and MSC Rail will also lease locomotives and railway cars to CP, said Portugal’s State Secretary for Transport Sergio Monteiro.

Also bidding for CP Carga were Portuguese holding company Cofihold and private equity firms Springwater Capital of Switzerland and Atena
Equity Partners.

The government has also decided to cancel the sale of state-owned railway equipment maintenance firm EMEF due to a probe of possible state aid to EMEF launched by European authorities after a complaint by its competitor.

Over the past few years Portugal has implemented a program of state property sell-offs, agreed upon with its European and IMF creditors, under the terms of a 2011-2014 bailout deal. Most privatizations have been completed, far exceeding Lisbon's revenue target.

For more of the Reuters story: www.reuters.com