Latin America's largest shipping company is in negotiations to create a joint venture in the American continent with a Dutch tug boat giant, after confirming the valuation of their respective businesses.

Chilean Sudamericana Agencias Aereas and Maritimas S.A. (SAAM) and Dutch tug boat company SMIT have agreed the values of their businesses are US$520 million and US$470 million respectively.

They have signed a memorandum of understanding (MoU) on the definition of the strategy, the businesses and assets for a joint association.

The companies have also agreed on the organizational structure of the board of directors and officers, and how each company would contribute to the new venture.

If the agreement goes ahead then these companies would would lead the market in the Americas, operating  a fleet of 150 leading technology tug boats.

Compañia Sud Americana de Vapores S.A. (CSAV) is the parent company of SAAM while SMIT is a subsidiary of Boskalis, the second most important player in the world in the tug boat industry.

The proposals are in the first stages of negotiations and any binding agreement will need to be ratified by the board of directors and shareholders.

Photo: SMIT

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