DPI to acquire CSX terminal business for US$1.15bn

United Arab Emirates port company Dubai Ports International (DPI) has signed a definitive agreement with CSX Corporation to acquire the latter's international terminal business, DPI and CSX announced. North Carolina-based CSX World Terminals has operations worldwide, including Latin America where it operates a terminal at Venezuela's Cabello port, and a terminal at Caucedo port in the Dominican Republic. The acquisition, which includes other related interests, is for US$1.15bn and subject to customary adjustments. The transaction will be financed from a committed facility arranged and underwritten by Deutsche Bank, and is expected to be completed in the first quarter next year. The transaction is consistent with DPI's international growth strategy and follows successful acquisitions and management contracts in the Middle East, Europe and India, according to the joint statement. The transaction brings a number of key benefits to DPI, including access to new growth markets such as Asia and Latin America that offer the highest growth rates in volume terms for the port industry worldwide. "This is a major step in DPI's global expansion strategy. The acquisition will give DPI an important platform in the North Asia region, notably in Hong Kong, China and Korea and further expands our global network in Europe and the Americas," DPI executive chairman Sultan Ahmed Bin Sulayem said. For his part, CSX Corporation chairman Michael Ward said the transaction will be "another important step in our continuing efforts to focus on the North American railroad business."