Adani Ports Acquires Australian NQXT for A$3.98 Billion

APSEZ Expands Global Reach with Strategic Acquisition

Adani Ports and Special Economic Zone Ltd (APSEZ), India's largest integrated transport and logistics company, has approved the acquisition of the North Queensland Export Terminal (NQXT) in Australia. The transaction, valued at an enterprise level of A$3.98 billion (approximately$2.54 billion), marks a significant step in APSEZ's global expansion strategy and its ambition to handle one billion tonnes of cargo annually by 2030.

Details of the Non-Cash Transaction

The acquisition of Abbot Point Port Holdings Pte Ltd (APPH), the entity that owns and operates NQXT, will be executed through a non-cash deal with Carmichael Rail and Port Singapore Holdings Pte Ltd (CRPSHPL), a related party. Under the terms, APSEZ will issue 14.38 crore new equity shares via a preferential allotment. This arrangement will result in a 2.13% increase in the promoter group's holding in APSEZ. The company confirmed that its leverage will remain at similar levels post-transaction. As part of the deal, APSEZ will also assume certain non-core assets and liabilities from APPH, which are expected to be realized shortly after the acquisition with a zero net impact on the valuation.

A Profile of North Queensland Export Terminal

NQXT is a critical infrastructure asset located at the Port of Abbot Point, about 25 km north of Bowen in Queensland. It is a natural deep-water, multi-user export terminal with a current nameplate capacity of 50 million tonnes per annum (MTPA). The terminal operates under a long-term lease from the Queensland Government that extends until 2110. NQXT serves as a vital export gateway for Australia’s resource-rich Bowen and Galilee basins, primarily handling metallurgical and thermal coal. The terminal has long-term 'take or pay' contracts with eight major customers, ensuring stable revenue streams.

Financial Performance and Future Projections

In the fiscal year 2025, NQXT handled an all-time high cargo volume of 35 million tonnes. The terminal generated revenue of A$349 million and an EBITDA of A$228 million during this period. APSEZ projects significant growth for the asset, targeting an increase in EBITDA to A$400 million within the next four years. The company also anticipates an incremental EBITDA margin exceeding 90% from the terminal's operations, excluding pass-through costs. The acquisition is expected to be immediately value-accretive for APSEZ shareholders.

Strategic Importance for Adani Ports

Ashwani Gupta, Whole-time Director and CEO of APSEZ, described the acquisition as a “pivotal step in our international strategy.” He highlighted that NQXT's strategic location on the East-West trade corridor opens new export markets and secures long-term contracts. The terminal is poised for robust growth, driven by increased capacity and upcoming contract renewals. Furthermore, the asset aligns with future energy trends, with identified potential for green hydrogen exports, which is a key part of the Queensland Government's strategy. This acquisition brings APSEZ closer to its goal of handling one billion tonnes of cargo by 2030, with international operations expected to contribute 15% of this volume.

Re-acquiring a Familiar Asset

This transaction marks a return of the asset to APSEZ. The company had first acquired NQXT in 2011 for approximately $2 billion before selling it to the Adani family in 2013 to focus on domestic expansion. With a stronger balance sheet and a dominant market position in India, APSEZ is now re-integrating the terminal into its portfolio as part of a renewed global growth strategy. The current valuation is considered comparable to the 2013 transfer, despite capital investments and inflation over the past decade.

Key Financial and Operational Data

Commitment to ESG and Community

NQXT has a strong track record in environmental, social, and governance (ESG) practices. In FY25, the terminal reported zero environmental incidents and zero fatalities, with a low lost-time injury frequency rate of 1.7. The operation has also demonstrated a strong commitment to the local community, with 50% of its operational spending in FY25 directed to local and regional suppliers. Since 2017, A$2.4 million has been invested in community initiatives. Notably, over 5% of NQXT's workforce identifies as Aboriginal and Torres Strait Islander, a figure higher than the national average.

Regulatory Approvals and Timeline

The completion of the acquisition is subject to several regulatory and shareholder approvals. These include clearances from the Reserve Bank of India (RBI), Australia’s Foreign Investment Review Board (FIRB), and APSEZ's minority shareholders. The transaction is expected to close within the next two quarters. A team of advisors, including Cyril Amarchand Mangaldas, Ashurst, Grant Thornton Bharat LLP, and SBI Capital Markets, assisted in the deal.

Conclusion

The acquisition of NQXT is a strategic move that significantly enhances APSEZ's global logistics and transport footprint. By integrating a high-performing, cash-generating asset with a clear growth trajectory, Adani Ports reinforces its market position and accelerates its journey toward becoming one of the world's largest port operators. The focus now shifts to securing the necessary approvals to finalize the transaction and begin integrating the Australian terminal into its global network.