Egytrans to finalize NOSCO acquisition in 4Q 2023: The Egyptian Company for Transport Services’ (Egytrans) will finalize its acquisition of 99.9% of the National Transport and Overseas Services Company (NOSCO) through a share swap in 4Q 2023, Egytrans said in a press release (pdf). The acquisition will result in Egytrans shareholders holding a majority 70.17% stake in the merged entity, which will now be known as Egytrans NOSCO, while the remaining 29.83% ownership will be held by NOSCO shareholders, according to the statement. The capital of Egytrans Nosco will be EGP 224.9 mn, the statement added.

New management structure: Egytrans Chairman Gamal Moharam will assume the role of non-executive chairman for Egytrans NOSCO, while Egytrans CEO Abir Leheta and NOSCO General Manager Mohamed Nadim are set to serve as co-CEOs of the combined company.

The acquisition will see the merged entity undergo organizational restructuring…: “The plan is to have Egytrans NOSCO serve as a non-operational holding company, overseeing several subsidiaries,” Leheta told Enterprise Logistics. These include: NOSCO; Egytrans Depot Solutions (EDS), which is currently operational and specializes in ISO tank container cleaning and maintenance; Egytrans Auto Solutions (EAS), which has been established but has yet to commence operations; in addition to two prospective entities, Egytrans Logistics Solutions and Egytrans Freezone.

…and expand its fleet : NOSCO’s fleet of 126 axle lines, along with 75 regular trucks, will be combined with Egytrans’ fleet of 80 axle lines and 25 regular trucks, Leheta told Enterprise Logistics. “Egytrans NOSCO’s combined fleet of 206 specialized trucks are compatible, giving the company the flexibility to combine axle lines based on the specific load requirements,” Nadim told us. “This boosts our capabilities in a way that is unparalleled in Egypt,” he added. The combined entity will also possess seven storage facilities once the acquisition is complete.

What the acquisition offers Egytrans: The acquisition will allow Egytrans to “expand its presence in the projects and land transport markets, bolster warehousing and fleet capacities, and tap into a large joint customer base,” the statement said.

It will also help both companies boost efficiency : While 90% of NOSCO’s total revenue is generated from its operations based in Alexandria, Egytrans specializes in providing freight forwarding services across multiple ports nationwide, the co-CEOs told us. NOSCO’s transportation routes run from Alexandria to the Western Desert or Red Sea regions, both of which house substantial oil and gas reserves. “These trucks would return empty upon finishing their assignments. However, these vehicles can now be efficiently repurposed to support Egytrans’ activities. For instance, a NOSCO truck that has concluded a delivery in the Red Sea area can transition to facilitating an Egytrans delivery from Ain Sokhna to Sixth of October, increasing efficiency and utilization,” Nadim explained.

LOOKING AHEAD – The company is considering expanding its operations to the GCC and Africa, Nadim said, without mentioning a specific timeline. The focus for the next two years will be on enhancing operational efficiency following the acquisition, he added.

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