Mediterranean Shipping Company (MSC) has struck a deal with New York-headquartered Global Infrastructure Partners (GIP) to buy a 50% stake in Italian passenger rail operator Italo, the latest in line of series of investments made by the world’s largest containerline.
Under the deal, the remaining 50% will be held by GIP, along with German insurer Allianz and other co-investors and with the Swiss-based MSC and GIP having joint governance of the business.
Launched in 2012, Rome-based Italo operates in the high-speed rail passenger transportation market and it is the second largest operator in Italy after state-owned Ferrovie dello Stato. The company operates a fleet of 51 electric trains, connecting 51 cities across Italy and serving over 20m passengers per year.
The financial terms of the deal were not disclosed. The agreement gives Italo an enterprise value of €4.2bn ($4.4bn), including €930m of debt, according to local media reports.
Infrastructure fund GIP bought Italo in 2018 for an equity value of around €2bn.
Last month, MSC tabled an offer to buy a 49.9% stake in Hamburg’s largest port operator, Hamburger Hafen und Logistik (HHLA), in a deal that could be worth nearly $1.4bn. Last year, the cash-rich group bought Bollore Africa Logistics from French conglomerate Bollore, on the basis of a $6.1bn enterprise value.
In August, MSC acquired the majority stake in AlisCargo Airlines, a Milan-based air freight carrier. The deal is a first step towards the acquisition of 100% of the company, expected to happen at the beginning of 2024.
“This agreement demonstrates our long-standing commitment to Italy and support for exceptional high-speed passenger rail transport in Italy,” said Diego Aponte, president of MSC, adding: “We strongly believe in the potential of Italo to further strengthen rail connectivity across Italy but also the Italian tourism market. Furthermore, today’s agreement also reflects our group’s goal of further developing sustainable modes of transport, for both passengers and cargo.”
