Buoyed by a healthy cash position during the pandemic, MSC is continuing its shopping spree. After acquiring Bolloré Africa Logistics and Aliscargo Airlines in the freight sector, the Swiss-Italian shipping group is now gaining a foothold in passenger transport with the acquisition of 50% of Italo's capitals competitor Trenitalia in the Italian high-speed rail market. The remaining shares will remain in the hands of Global Infrastructure Partners (GIP), as well as various investors including Allianz Capital Partners.
" We believe Italo has the potential to strengthen the rail connectivity across Italy but also in the Italian tourist market. The agreement also reflects our group's objective of developing sustainable modes of transport for both passengers and freight. This is in line with Italy's efforts to improve its infrastructure network through new projects presented in the National Recovery and Resilience Plan aimed at extending high-speed rail services areas currently without access" said Diego Aponte, Chairman of the MSC Group, in a joint statement with GIP.
SNCF has only made one return trip to Italo's capital
Founded in 2012, Italo (Nuovo Trasporto Viaggiatori) went through a difficult period during the pandemic. It currently operates a fleet of 51 high-speed trains built by Alstom, serving 51 towns in the Botte region and carrying some 20 million passengers a year. The SNCF was involved in Italo's adventure from the outset, owning 20% before selling the red trains in mid-2015 following a capital increase.
In its launch phase, the new rail company required substantial investment to acquire trains and to challenger Trenitalia through aggressive pricing. The deal with MSC now values Italo at €4.2 billion, including the €934 million in debt at 31 December. This represents a handsome capital gain for GIP, which took over Italo in 2018 for €2 billion.
However, the Italian competition authorities will have to give the go-ahead for this financial operation. At the end of 2022, MSC had to give up acquire ITA Airways alongside the German group Lufthansa, the Italian airline created from the ruins of Alitalia in the face of opposition from the Italian government. In tourism, the MSC conglomerate already owns the companies MSC Cruises and Explora Journeys.
