Adani Group Expands Marine Operations with $185 Million Acquisition of Astro

Adani Group, through its subsidiary Adani Ports and Special Economic Zone (APSEZ), has acquired an 80% stake in the offshore support vessel (OSV) operator Astro. This significant acquisition, valued at $185 million (approximately Ksh. 23.9 billion), marks a pivotal moment for APSEZ as it continues to expand its maritime footprint across critical global regions.

Astro, headquartered in Dubai, is renowned for its extensive fleet of offshore support vessels and its comprehensive range of services. The company operates 26 OSVs, including anchor handling tugs, flat-top barges, multipurpose support units, and workboats. These vessels are instrumental in supporting offshore platform construction, oil and gas field maintenance, and subsea facility operations in the Middle East, India, Far East Asia, and Africa.

For APSEZ, this acquisition is a strategic step toward achieving its vision of becoming one of the world’s largest marine operators. Ashwani Gupta, CEO of APSEZ, highlighted the significance of the acquisition, stating, “Astro’s acquisition is part of our roadmap to becoming one of the world’s largest marine operators. Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, taking the total count to 168.” Gupta also emphasized that the acquisition would enhance APSEZ’s access to a prominent roster of Tier-1 customers and further strengthen its presence in key markets such as the Arabian Gulf, the Indian subcontinent, and Far East Asia.

The all-cash deal reflects Adani Group’s ongoing commitment to expanding its maritime and logistics capabilities. APSEZ’s acquisition of Astro’s fleet will not only increase its operational capacity but also bolster its service offerings in offshore support and vessel management. The transaction is expected to be finalized within a month, as it does not require any regulatory approvals.

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The Adani Group, founded by Indian billionaire Gautam Adani in 1988, has grown into a massive conglomerate with investments spanning various sectors, including mining, ports, trading, electricity, and gas. With 10 companies under its umbrella, the group has established a strong presence in the global market. In addition to operating 15 ports and terminals in India, the group has undertaken development projects in Sri Lanka, Vietnam, Tanzania, and Israel.

A notable recent venture for the Adani Group includes a 30-year concession agreement with the Tanzania Ports Authority, signed in June 2024. This agreement allows Adani International Ports Holdings (AIPH) to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam Port, underscoring the group’s expanding influence in the port sector.

In Kenya, the Adani Group is involved in a controversial $1.85 billion (Ksh. 242 billion) investment proposal to expand the Jomo Kenyatta International Airport (JKIA) in Nairobi. Despite significant public opposition and concerns from local aviation workers, Adani Airport Holdings Limited, a subsidiary of Adani Enterprises Limited, has proceeded with incorporating a local company, Airports Infrastructure PLC, as part of the investment process.

However, the Adani Group’s rapid expansion and high-profile investments have not been without controversy. In 2023, the conglomerate faced allegations of fraud and market manipulation from an American investment research firm. Additionally, the group has been accused of political corruption, tax evasion, environmental damage, and legal actions against journalists.

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As APSEZ integrates Astro into its operations, the acquisition represents a significant step in its quest to enhance its global marine and logistics capabilities. While the deal positions APSEZ for future growth and operational excellence, it also highlights the broader challenges and scrutiny faced by the Adani Group in its pursuit of global expansion.