📊 BlackRock to buy GIP for $12.5B

Irbis Index December 2023

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News

BlackRock to buy Global Infrastructure Partners for $12.5B BlackRock, the world's largest asset manager, has agreed to acquire Global Infrastructure Partners (GIP), a private equity firm, for approximately $12.5B in cash and stock.

• This acquisition represents BlackRock’s largest deal in 15 years and signifies a significant move into private-market investments.

• GIP, based in New York, owns and operates companies in the energy, transportation, and water and waste sectors, including a stake in London's Gatwick Airport.

• BlackRock will pay $3B in cash and $12M in its shares, valued at about $9.5B, to acquire GIP.

• Five of GIP's six founding partners, including Chief Executive Bayo Ogunlesi, are joining BlackRock.

• This deal represents BlackRock's largest acquisition since it purchased Barclays's asset management business in 2009.

• The acquisition will boost BlackRock’s private assets by about 30%, doubling its private-market base management fees.

• The company expects to create a distinct Global Infrastructure Partners business with over $150B in assets under management, making it the second-largest private infrastructure manager globally. (link)

Clarion Partners Europe secures £427M for UK-only logistics fund Clarion Partners Europe has successfully raised £427M for its first UK-only logistics fund, surpassing its capital-raising target.

• The fund has attracted equity commitments from European, North American, and Asian institutions, including investors from Clarion Partner Europe’s previous pan-European logistics strategies.

• With gearing, the fund will have approximately £650M of investable capital.

• This fund is Clarion Partners Europe’s first dedicated solely to the UK market, which the company has re-entered after a seven-year hiatus.

• The fund's investment strategy will focus on high-quality, ESG-compliant logistics assets located in established UK logistics hubs.

• It will have the flexibility to invest across the logistics asset class, including last-mile logistics and big-box single-tenant warehouses.

• The fund also plans to target underperforming assets and selective development opportunities.

• Alistair Calvert, CEO of Clarion Partners Europe, sees this as an opportune time to scale up in the UK market, which is experiencing a pricing adjustment.

• Clarion Partners Europe will leverage its 24-year investment and asset management experience, which includes over £3B of logistics asset transactions across the UK and Europe. (link)

D-Orbit raises $110M to reach new heights in space logistics services D-Orbit, an Italian space logistics startup, has raised $110M in a Series C funding round.

• The round was led by Marubeni Corporation, a Japanese industrial sector company, with participation from Avantgarde, CDP Venture Capital, Seraphim Space Investment Trust, United Ventures, Indaco Venture Partners, Neva SGR, and Primo Ventures.

• D-Orbit provides logistics services for companies operating satellites and other services in space.

• The company plans to add another $50M to the Series C in the first half of this year.

• D-Orbit operates the ION Satellite Carrier, an orbital transfer vehicle that can host, transport, and precisely deploy a batch of small satellites, and then continue its mission in space.

• The funds will be used to expand D-Orbit's services, which include in-orbit transportation, precision deployment, and advanced release strategies.

• The company is also planning to expand its capabilities in the U.S., Europe, and the United Kingdom. (link)

APM Terminals plans to build $500 million container terminal near the Port of New Orleans APM Terminals, a global port operator, plans to build a $500M container terminal near the Port of New Orleans.

• The terminal will be developed in cooperation with Plaquemines Port Harbor and Terminal District, located 20 miles south of the Port of New Orleans.

• Plaquemines Port's location at the mouth of the Mississippi River provides water access to 33 states, offering connectivity through barge, rail, and interstate highways.

• The new facility aims to serve expanding global markets for commodities like oil & gas, grain, coal, and chemicals.

• The initial phase of the terminal will cover 200 acres, include on-dock rail, and feature a berth capable of handling the largest ships that pass through the expanded Panama Canal.

• There are options to expand the site up to 900 acres for terminal development and related logistics activities.

• The Port of New Orleans has not commented on the construction of the new facility in its vicinity.

• APM Terminals operates 64 maritime terminals in 38 countries, including four container terminals in the U.S. (link)

FedEx announces its own commerce platform for merchants FedEx has announced its e-commerce platform, FDX, which is expected to compete with Amazon.

• FDX will offer services such as demand generation, fulfillment, tracking, and post-purchase experiences including returns.

• The platform is currently in a private preview stage, with plans for a wider launch in fall 2024.

• Businesses can register their interest in trying out the platform through a form provided by FedEx.

• FedEx's services such as ShopRunner, an e-commerce platform it acquired in 2020, will be available for merchants to reach customers, show estimated delivery time on websites, handle carts, track packages, record the carbon emission impact of deliveries, and manage returns.

• The announcement comes in the context of Amazon's expanding services for merchants, including allowing third-party merchants who use Fulfiled by Amazon (FBA) to list Prime-eligible items on their own sites. (link)

Mitsubishi Electric announces the launch of AnyMile™ drone-based logistics operations management platform Mitsubishi Electric US, Inc. announced the launch of its AnyMile™ drone-based logistics and operations management platform, offering comprehensive shipment, fleet, and service management applications.

• “AnyMile aligns with Mitsubishi Electric’s mission to achieve truly global and interconnected sustainable smart society, while decreasing our carbon footprint.”, said Zafer Sahinoglu, vice president and general manager of Mitsubishi Electric Innovation Center (MELIC).

• The AnyMile platform supports all known categories of drones and is integrated with an Uncrewed Traffic Management System (UTM) for safe and efficient operations in low-altitude airspace.

• Other features include scheduling cargo pick-up, tracking delivery to multiple destinations, live maps, terminal and station management, and routine operational tasks.

• Allied Markets Research projects the drone industry to reach a valuation of $52.32B by 2031 due to a growing demand for time-efficient deliveries, including last-mile. (link)

Bosch Bets on Hydrogen for EV Trucking Future Bosch has initiated volume production of its fuel cell power module at the Stuttgart-Feuerbach plant in Germany.

• The first customer for these modules is Nikola Corporation, which will use them in its Class 8 hydrogen fuel cell electric truck set to enter the North American market.

• By 2030, Bosch projects that one in five new trucks over six tons will be equipped with a fuel-cell powertrain.

• Bosch's investment in hydrogen technology is substantial, with nearly Eur 2.5B allocated from 2021 to 2026.

• The company is also developing a hydrogen combustion engine suitable for heavy-duty vehicles and construction machinery, which will be practically carbon-neutral when powered by green hydrogen.

• Bosch's commitment to hydrogen technology is part of a broader strategy to decarbonize energy supply and meet future climate-neutral energy needs.

• Bosch is the first company to produce these systems in both China and Germany, with plans to manufacture stacks for mobile applications in the U.S. by possibly as soon as 2026.

• The announcement of these developments was made at the Consumer Electronics Show (CES) 2024. (link)

Reports

2024 Supply Chain Risk Report The report by Everstream Analytics highlights the biggest risks that could disrupt supply chains in 2024.

• Extreme weather is identified as the top risk for supply chains in 2024 by Evestream Analytics. This risk is associated with the increasing frequency and severity of extreme weather events, which can cause significant disruptions to supply chains and delivery schedules.

• Cyberattacks on supply chains, which rose sharply in 2023, will continue to be a concern in 2024.

• The report predicts that suppliers may experience shortages of agricultural items due to factors such as high input prices, farm profitability concerns, increasing protectionism, and extreme weather events.

• Geopolitical instability, particularly in Taiwan, is identified as a major risk. Any escalation in tensions could have a devastating impact on global supply chains.

• Protectionist measures, especially between the U.S. and China, are expected to block technology development, forcing companies to search for new technology suppliers.

• Environmental regulations are predicted to overwhelm operations. Even companies with existing environmental, social, and governance (ESG) policies will feel disruption from growing environmental regulations.

• The report suggests strategies to minimize these risks, such as closely monitoring routes and shipments for approaching disruption, leveraging predictive weather forecasts and disruption alerts, and using predictive ETAs.

• Everstream Analytics provides round-the-clock incident monitoring coverage and uses artificial intelligence and human expertise to predict overall risk exposure, probability, severity, and relevance for clients and end users. (download the full report here)

Discussion

Last-Mile Roundtable: The nitty-gritty on the all-important last mile The roundtable discussion featured experts from Intralox, Blue Yonder, RXO, and Knapp, who examined the challenges and innovations in last-mile logistics.

• Last-mile delivery is a significant cost driver, accounting for more than half of total shipping expenses.

• The market, which was valued at $131.5B in 2021, is projected to nearly double by 2031, reaching $288.9B.

• The demand for rapid delivery services is increasing, prompting advancements in automation, particularly in sortation facilities, to improve efficiency and service levels.

• The panelists emphasized the need for innovative solutions to manage the growing complexity and cost associated with last-mile deliveries. (link)

Other headlines 

Last-mile business, while down from the pandemic peak, sees slow but steady growth ahead - DC Velocity

Japanese firms ink FEED deal for liquefied hydrogen supply chain - Offshore Energy

Maersk to use freight rail to circumvent Panama Canal amid drought - Freight Waves

Five ways supply chain leaders can hire the best talent - Supply Chain Dive

Industrial tech giant ABB buys AI-powered robot navigation startup Sevensense - ABB

Canada Post selling off logistics business as part of effort to 'transform' Crown corp - CBC News