M&A activity has picked up over the last two weeks, with major players from the UAE and Qatar making moves in several segments of the logistics sector, from aviation and freight forwarding to data centers.

FROM THE UAE

#1- Real estate developer Damac’s data center unit Edgnex acquired Finland-based data center firm Hyperco as part of its ongoing push into the sector, according to a statement released last week. The company operates in Finland and Sweden, and will allow Edgnex to “build a significant future capacity in the Nordics and establish a strong foothold in the market,” the statement said. The company’s three founders will continue to lead the company.

Edgnex has big plans in Europe — and beyond: Elsewhere in Europe, Edgnex allocated USD 100 mn with Vodafone Turkey for a 6 MW data center in Izmir, also set to go online this year, as well as a separate initial USD 150 mn investment for a data center in Sparta, Greece.

Edgnex is on track to deliver 55 MW worth of data center capacity in the Middle East by the end of the year, and a 3 GW capacity globally. It is also targeting more than 300 MW of operational capacity by next year, backed by a USD 3 bn pipeline. The company also plans to invest a whopping USD 20 bn to develop data centers in the US, with plans to build 2 GW of capacity over the next four years.

#2- ADQ has secured a 63.26% stake in Aramex, after shareholders offered acceptances for some 40.57% shares in the company to be acquired by ADQ subsidiary Q Logistics Holding, according to a bourse disclosure (pdf) released late March. ADQ already owns a 22.69% stake in Aramex through its subsidiary AD Ports.

REFRESHER- Q Logistics Holdings launched a voluntary tender offer to buy up all of Aramex’s shares — excluding the 22.69% stake already held by ADQ shipping unit AD Ports — at AED 3 apiece, valuing the freight services firm at AED 4.4 bn. The company had snapped up a 35.31% stake in Aramex by the time the offer period ended before mid-march, though more shareholders agreed to tender their shares later. Aramex will soon be folded into ADQ’s transport and logistics cluster, joining assets like AD Ports, Abu Dhabi Airports, Etihad Airways, and Etihad Rail.

ADVISORS- Rothschild is acting as financial adviser for Q Logistics, while EFG Hermes UAE, International Securities and Emirates NBD capital serve as co-lead managers on the transaction. Clifford Chance was hired to provide counsel on the potential acquisition. Aramex tapped HSBC as its financial advisor for the potential takeover.

QATARI MOVES-

#1- Qatar Airways snag final approval for its Virgin Australia alliance: Qatar’s flagship carrier Qatar Airways and Virgin Australia have received approval from the Australian Competition and Consumer Commission to move forward with an alliance that will provide 28 weekly flights between Australia and Doha, according to a statement published in late March. Virgin Australia will operate flights from Sydney, Brisbane, and Perth to Doha starting June 2025 using leased aircraft — to be followed by a Melbourne-Doha route in December 2025.

ICYMI- Qatar Airways received approval from the Australian government for its proposedacquisition of 25% of Virgin Australia earlier last month. The Qatari carrier will acquire the share from US private equity firm Bain Capital, which will still retain the majority stake in the airline. The flights will translate to over 100 new connecting itineraries across Europe, MENA, and Africa for Virgin customers.

#2- QSE-listed Lesha Bank — formerly known as Qatar First Bank — indirectly acquired a stake in Scotland’s largest airport Edinburgh airport, it said in a statement (pdf) released last week. The move — made through an investment in an infrastructure-focused investment fund that owns stakes in the airport — is part of the lender’s plans to ramp up exposure to aviation and infrastructure assets, the statement reads.

Who’s holding the keys? The airport is jointly owned by Vinci Airports (holding a controlling stake) and PE fund Global Infrastructure Partners (GIP). While the statement didn’t name the fund through which it gained exposure to the airport, we suspect it is GIP.

Doha ? UK airports: This is the latest Qatari investment in UK airport assets after the Qatar Investment Authority acquired a 20% stake in London’s Heathrow airport back in 2012.

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