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Turkey’s giant cargo company MNG Cargo is being sold to Dubai

Dubai-based cargo company Aramex is in talks to purchase MNG Cargo.

Sources with knowledge of the acquisition negotiations conducted by Aramex, of which ADQ, which manages Abu Dhabi’s public investments, is a shareholder, stated that the negotiations are at an advanced level, while one of the sources said that the size of the possible deal could reach the level of $500 million.

Although the political differences between Turkey and the United Arab Emirates (UAE) are still very deep, they have been holding talks to focus on strengthening their economic ties and reducing tensions rather than trying to resolve the ideological conflict across the Middle East.

A source close to the subject said that the negotiations are at an advanced stage, while another source stated that MNG Cargo is in the “due diligence” stage with Aramex.

ARAMEX DID NOT RESPOND TO QUESTIONS

Aramex and MNG Cargo did not respond to questions on the subject.

Aramex, which was bought 22.25% by ADQ last year, announced this week that it is splitting its core business to capture growth in the transportation and logistics sector after the coronavirus outbreak.

After the restructuring, the company created a new regional structure and appointed a senior executive responsible for strategy to manage its international growth, merger and acquisition plans.

Founded in 2003, MNG Cargo has more than 850 branches and more than 11,000 employees. The venture capital firm Turkven and the Sancak family bought MNG Cargo in 2017.

President Tayyip Erdogan and UAE National Security Advisor Sheikh Tahnoun bin Zayed al-Nahyan held a meeting last week to discuss economic cooperation and the UAE’s investments in Turkey.

International Holding, of which Tahnoun is the chairman, told Reuters last month that they are evaluating investment opportunities in sectors such as health, industry and food processing in Turkey.

“The UAE is interested in seeking ways to strengthen ties between the two countries,” a UAE official told Reuters, pointing to trade and investment opportunities in the transport, health and energy sectors.

Source: Mynet / Translated by Irem Yildiz

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