Dubai's DP World closes $2.6bn deal to acquire EZW
EZW's key asset is the Jebel Ali Free Zone (JAFZ), one of the largest free zones in the GCC
DP World Limited on Tuesday announced that it has closed the $2.6 billion acquisition of Economic Zones World (EZW) from Port and Free Zone World (PFZW).
EZW's key asset is the Jebel Ali Free Zone (JAFZ), which is one of the largest free zones in the GCC and a major industrial and commercial development in Dubai.
It is widely recognised, along with DP World, as a key driver of the country's economic growth.
Sultan Ahmed Bin Sulayem, chairman of DP World, said: "We are very pleased to have reached the close of this acquisition which is compelling from both a strategic and financial perspective.
"This will allow us to enhance our position as the leading logistics hub in the Middle East region, accelerate growth and deliver shareholder value.
"Acquiring a strategically located asset integral to Jebel Ali's continued success enhances our competitive advantage and aligns with our strategy of providing port-centric integrated logistics solutions at key gateway locations.
"Combining the two assets makes economic and strategic sense for all parties involved, including customers, particularly in the context of a significant growth phase in port capacity at Jebel Ali and a strong economic outlook for Dubai and the wider GCC region. The two assets will allow DP World to co-ordinate planned expansion and deliver an improved customer proposition."
In December, shareholders of DP World approved buying Economic Zones World from its majority shareholder.
In November DP World said the deal would include the assumption of net debt of $859 million.