GRINDROD, the shipping and logistics group, has acquired the remaining 50% stake it did not already own in Oreport, an industrial raw material procurement specialist, for an undisclosed amount.
Grindrod acquired a half share in Oreport in 2005 for R40m, which provided the company with access to new cargo markets.
At the time, the company said Oreport would contribute R8m-R10m to its bottom line.
"There are a number of synergies between the value chain of Oreport and services and businesses of the wider Grindrod group. This acquisition provides opportunity for further growth of our trading division," Grindrod company secretary Craig Robertson said last week.
The acquisition already has regulatory approval. Last month, the Competition Tribunal unconditionally approved the merger between Grindrod and Oreport.
Oreport sources and transacts trade in cargoes including alloys, steel, coal and minerals.
Robertson said the deal provided diversification benefit as the company was now involved in agricultural commodities, fuels and industrial products.
Grindrod's trading division owns both Atlas Trading & Shipping, which focuses on agricultural commodities, and Cockett Marine Oil, which deals with marine fuel and lubricants.
"The businesses within the trading division, especially Atlas Trading & Shipping and Oreport, often provide base load cargo for the group's owned and operated vessels," said Brendan McIlmurray , CEO of Grindrod's trading division.
Grindrod acquired a half share in Oreport in 2005 for R40m, which provided the company with access to new cargo markets.
At the time, the company said Oreport would contribute R8m-R10m to its bottom line.
"There are a number of synergies between the value chain of Oreport and services and businesses of the wider Grindrod group. This acquisition provides opportunity for further growth of our trading division," Grindrod company secretary Craig Robertson said last week.
The acquisition already has regulatory approval. Last month, the Competition Tribunal unconditionally approved the merger between Grindrod and Oreport.
Oreport sources and transacts trade in cargoes including alloys, steel, coal and minerals.
Robertson said the deal provided diversification benefit as the company was now involved in agricultural commodities, fuels and industrial products.
Grindrod's trading division owns both Atlas Trading & Shipping, which focuses on agricultural commodities, and Cockett Marine Oil, which deals with marine fuel and lubricants.
"The businesses within the trading division, especially Atlas Trading & Shipping and Oreport, often provide base load cargo for the group's owned and operated vessels," said Brendan McIlmurray , CEO of Grindrod's trading division.
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