Grindrod and Sturrock Shipping are pleased to announce the merger of their respective ships agency operations under a 50:50 joint venture between Grindrod and Sturrock Shipping. Sturrock Shipping is owned by the Calulo Group, Grindrod’s existing BEE partner, and the Sturrock family.
The merger is expected to take effect from 1 November 2012, with the portion of the merger relating to the Namibian agency company still being subject to Namibian competition commission approval. This merger follows on from the successful acquisition by Sturrock Shipping of a 15% shareholding in Röhlig-Grindrod (Pty) Ltd.
Hylton Gray, CEO Grindrod Logistics said: “We are extremely pleased to have cemented the relationship with Sturrock Shipping and our BEE partner, Calulo. This joint venture will present many business opportunities across both local and international markets, as well as achieve our collective aspirations of a minimum level 3 BEE rating for the South African operations.”
The combined ships agency business is represented across Africa and Australia through long established brands, with both Grindrod and Sturrock Shipping having brands that are over 100 years old. The independent brands will continue to be operated under the combined business. Where Grindrod has a strong market presence in the dry bulk space, providing services to both liner and non-liner clients, Sturrock Shipping is primarily involved in non-liner wet bulk activities. Whereas Sturrock Shipping has a significant footprint in Sub-Saharan Africa and Australia, Grindrod’s ships agency operations are conducted in southern Africa only. As a result, significant synergies and market opportunities are expected to arise from the merger of these two businesses.
Andrew Sturrock, who has been appointed the Chief Executive Officer of the merged business, said “Amassing a significant amount of expertise across the ships agency spectrum allows us to offer increased services to the global shipping industry. Combined with Grindrod’s port and infrastructure thrust into Africa we look forward to continued expansion of the agency business into emerging markets”.
Mr Mkuseli Faku, the chairman of Calulo said “This transaction further cements the close business relationship that exists between Calulo and the Grindrod group and brings together two long established and respected ships agency businesses, in order to better serve customers as they expand globally.”
Media Contact
Grindrod:
Alison Briggs
Public Relations and Marketing Manager
Grindrod Limited
Durban, South Africa
+27 (31) 302 7113