Business

Bollore Receives US6.43 Billion Offer from MSC to Buy its African Assets

Bollore African Logistics, owned by French magnate Vincent Ballore, has received an offer worth US$ 6.43 Billion for his African logistics assets from Mediterranean Shipping Company(MSC), a Swiss-Italian company based in Geneva and controlled by the Aponte family.

Its subsidiary MSC Cruises is one of the major cruise companies in the world.

Bolloré Africa Logistics, is the biggest transport and logistics operator in Africa, where it has a network without equal with 250 subsidiaries and almost 21,000 employees in 49 countries, including 47 in Africa.

The offer by MSC, considered the world’s second-largest container shipping company, now creates intense competition between MSC and its rivals CMA CGM (CMACG.UL) and Maersk in port infrastructure and non-maritime logistics services.

The COVID-19 pandemic has prompted shortages of container ships and created logjams at ports at a time of very high consumer spending, which has sent freight rates to record levels.

This has filled the coffers of the biggest shipping lines and prompted them to seek further integration by snapping up land-based services.

Bollore group has been an acquisition target after it failed to keep up with the investments called for by increased competition in Europe as well as by the entrance of cash-rich newcomers from China and the Middle-East, a source close to the matter said.

Bollore financials in 2020

Bollore Africa Logistics’ revenue fell by 10% last year due to a fall in activity and the end of its concession in Douala, Cameroon.

The French government is likely to scrutinize the transaction as the infrastructures controlled by Bollore’s entity are deemed strategic by the former colonial power in West Africa.

“It’s on good track,” the source said, adding that Bollore gave a heads-up to the government before announcing the potential deal.

The sale of Bollore’s African assets would deprive the listed family-owned group, valued at 12.9 billion euros on the market, of a large chunk of its historical activities and would make its holdings in media group Vivendi (VIV.PA), the company’s centre of gravity.

The announcement comes just two months before Vincent Bollore, 69, is set to hand over the reins of this group to his four children.

The businessman, who spent most of his adult life building up this key activity through acquisitions and personal connections with statesmen in West Africa, has repeatedly said he would retire on Feb. 17, 2022, which marks the 200th anniversary of the group, founded in Brittany.

Bollore Africa Logistics employs about 20,800 people and has 16 container terminal concessions, including in Ivory Coast, Ghana, Nigeria and Gabon. It also operates three rail concessions in the region.

ALSO READ: Bollore Unveils Rail Export Solution Through Naivasha




Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
WP Twitter Auto Publish Powered By : XYZScripts.com