MSC makes move to acquire Gram Car Carriers in US$700M deal

Switzerland-based liner major Mediterranean Shipping Co (MSC) has submitted a bid to acquire Gram Car Carriers (GCC) in a potential deal valued at approximately NOK7.6 billion (US$700 million).

The offer, extended through MSC subsidiary Shipping Agencies Services (SAS), proposes to acquire GCC at NOK 263.69 per share in cash, representing a significant premium of 28.3% to GCC’s stock price on April 23.

Following deliberations, the board of Oslo-listed GCC, which boasts a substantial revenue backlog of $794 million as of the first quarter, has unanimously recommended that shareholders accept the offer.

Gram Car Carriers said that shareholders representing 55.85% have accepted the offer, including the company’s largest shareholders, members of the board and management.

As disclosed, the intention is to continue GCC’s operation ”as is” under the same name and organisation.

GCC, the world’s third-largest tonnage provider within the Pure Car Truck Carriers (PCTCs) segment, has a fleet of 18 owned vessels across the distribution, mid-size, and Panamax segments.

The strategic move from MSC comes amidst historically strong market fundamentals, with car sales poised to surpass pre-Covid levels and a significant shortage of capacity expected to persist for at least the next couple of years.

The acceptance period for the offer is scheduled to commence no later than May 31 and will remain open for a minimum of 20 days. The transaction is anticipated to conclude during the third or fourth quarter of 2024.