HNA reported to have finally purchased Frankfurt-Hahn


Reports are emerging from several press sources that the acquisitive Chinese conglomerate HNA Group has finally concluded its purchase of Frankfurt-Hahn airport. The Financial Times newspaper reports that it has been told by HNA that it paid €15.1m today (Thursday 10th August) for the airport which would be in line with previous statements, however there is no confirmation of this from the owners, the Lander of Rhineland-Palatinate and the State of Hesse. At the beginning of the year, HNA Group signed an understanding with Rhineland-Palatinate to the effect that the Chinese company would buy all of the equity of the company owning the airport. However, the conclusion of the deal appears to have been delayed until yesterday.

The sale of the facility has not always gone smoothly. Another Chinese company, the Shanghai Yiqian Trading Company, attempted to purchase the facility last year only to have the Government in Beijing block the deal at the last minute.

The airport has had a significant cargo through-put in the past, however it has suffered in recent years with volumes volatile at around 100,000 tonnes. 

HNA Group is also reported to be interested in buying the Nikola Tesla Airport in Belgrade, whilst it has already bought Rio de Janeiro Airport in Brazil.

This appears to be part of a strategy to enter both passenger and freight operations in airports worldwide. HNA has created a ‘Modern Logistics’ division within the wider group that includes warehousing and cold chain capabilities. However, the centrepiece of the company’s logistics business must be the cargo handling and airport services company Swissport, which it bought for US$2.8bn in 2015.

The wider HNA Group has been engaged on a substantial programme of acquisition over the past several years costing several billions of dollars, including major purchases of hotel companies and even a 10% stake in Deutsche Bank. Whilst other Chinese companies have encountered pressure from the Chinese central Government to moderate overseas investment, HNA Group appears determined to continue to expand, with the latest deal indicating that logistics is central to its strategic objectives.

 

Source: Transport Intelligence, August 10,2017

Author: Thomas Cullen