MSC Grows Car Transport Market with Gram Car Carriers Purchase

Mediterranean Shipping Company (MSC), the world's biggest container shipping company, has taken a major step to improve its car transportation services by purchasing most of the shares in Norwegian company Gram Car Carriers (GCC). With this purchase, MSC now owns almost 97% of GCC through its subsidiary, SAS Shipping Agencies Services.

The acquisition deal, which includes a cash offer of Norwegian Kroner (NOK) 263.69 per share, totals $696.3 million. Following the completion of the deal on July 25, GCC will delist from the Oslo Stock Exchange and withdraw from the OTCQX Best Market in New York.

GCC is the third-largest provider of pure car/truck carriers (PCTCs), with a fleet of 17 vessels. In 2023, GCC reported revenues of $200.9 million and a net profit of $94 million. This acquisition is part of MSC's broader strategy to expand its market presence, following other significant investments in logistics and terminal operations earlier this year.

MSC's entry into the PCTC space aligns with the company's expertise in car transportation, as it already manages car shipments through its container vessels. With regulatory approvals from Ukraine, Portugal, and Japan, the acquisition is scheduled to close without a hitch. 

The automotive logistics market remains strong despite flat manufacturing levels, with high global demand for vehicle transport expected to keep capacity tight in the coming years. This acquisition positions MSC to meet this demand and expand its reach in the car transportation sector.