Spain's biggest shipping company has been created after Naviera Armas bought ro-pax and freight ro-ro operator Trasmediterranea from the Acciona group.

The deal is worth up to EUR 403.7m ($468m) and invlives both cash and debt.

Acciona is selling 92.7% of the company at a price of EUR 260.4m, plus the assumption of EUR 127.3m in debt owed by Trasmediterranea to it.

The final price could increase by up to EUR 16m based on future performance.

"The deal will foreseeably be completed in the first quarter of 2018, once it has been approved by the Spanish competition authorities," Acciona said.

Major fleet to emerge

For its money, Armas is getting a 21-ship fleet: four high-speed ferries, two "super-ferries", three freight vessels and 12 conventional ro-paxes.

Armas itself operates 12 passengerships, plus one on order.

The seller wants to concentrate on its core strategic business of sustainable infrastructure and renewable energy.

Acciona chairman Jose Manuel Entrecanales said: "This transaction enables Acciona to adjust and strengthen its business model, focused in the areas of sustainable infrastructure and renewable energy, in line with market expectations.

"Consequently, it was decided to close this deal at an opportune time as the shipping sector is entering a recovery phase, and following a process of improving the company's operating efficiency."

He added: "The buyer is a Spanish industry player that is very familiar with the market, which will undoubtedly contribute to enhancing Trasmediterranea's competitive position."

Limited overlap

Acciona believes the combination of Trasmediterranea and Naviera Armas will give rise to an operator with complementary markets, with no overlaps and greater flexibility to consolidate its leadership position in the highly competitive Spanish sector.

It bought Trasmediterranea in 2002, establishing it as Spain's largest shipping company.

It operates 32 routes, mainly linking mainland Spain with the Balearic Islands, North Africa and the Canary Islands.

The company is also involved in logistics, shipping agency and cruiseship handling, as well as operating five terminals.

Last year, it transported 2.5m passengers, up 2.3% on 2015, 5.8m lane-metres of cargo, a rise of 2.3%, and 576,000 vehicles, up 5.7% year-on-year.