CSAV, Boskalis Value Tug Operations for $990 Million Venture

Cia. Sudamericana de Vapores SA and Royal Boskalis Westminster NV agreed on valuations for the tug-boat operations they plan to combine to create a $990 million joint venture.

The companies valued CSAV’s Sudamericana Agencias Aereas y Maritimas SA unit at $520 million and Boskalis’s SMIT unit at $470 million, according to a statement today on Valparaiso, Chile-based CSAV’s website. The joint venture is subject to approval by both boards.

The companies decided on an organizational structure for the venture and didn’t name the executives that will run it. CSAV’s SAAM unit is the world’s fourth-largest operator of tug boats and the largest in the Americas. Boskalis, based in the Netherlands, is the world’s second-largest tug boat operator.

CSAV, the world’s eighth-largest operator of container ships, is closing some unprofitable routes after losing $525 million in the first half of this year on the slowing global economy, rising fuel costs and a worldwide glut of vessels. The company also plans to make SAAM a separately listed company.

CSAV fell 0.3 percent to 119 pesos at 2:54 p.m. in Santiago.

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