Bolloré sells logistics and transport assets in Africa to MSC, for $5.7 billion

Logistics

Tuesday, 05 April 2022 16:01

Bolloré sells logistics and transport assets in Africa to MSC, for $5.7 billion

(Togo First) - French group Bolloré will sell its logistics operations in Africa to the Mediterranean Shipping Company (MSC) for € 5.7 billion (nearly 3,740 billion FCFA). The amount was disclosed last Thursday in a statement released by Bolloré Transport & Logistics, at the end of negotiations between the two big companies (negotiations started last year).

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"At the end of the exclusive negotiations announced on December 20, 2021 and following the favorable opinions issued by each of the employee representative bodies consulted, the Bolloré Group has signed today (March 31, 2022, editor's note), the contract providing for the sale to the MSC Group of 100% of Bolloré Africa Logistics, which includes all the transport and logistics activities of the Bolloré Group in Africa, based on an enterprise value, net of minority interests, of € 5.7 billion," said Bolloré Transport & Logistics.

Pending "regulatory approvals" and the approval of "the relevant competition authorities," the sale is expected to take effect by the end of the first quarter of 2023.

While Bolloré will remain in Africa, particularly in the communication, publishing, and especially media sectors -through Canal+ notably- this sale is significant. The region, indeed, strongly contributed to the French group’s prosperity. Also, the withdrawal happens in a context where Vincent Bolloré, who founded the group, and other French actors are being more criticized in Africa.

For MSC, the deal will help it strengthen its position in the African port sector, and in Togo especially. Once Togolese authorities greenlight the sale, the Italian-Swiss giant will get its hands on Togo Terminal, which is currently managed by the Togolese subsidiary of Bolloré Africa Logistics (BAL).

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The port of Lomé, however, is already MSC’s regional hub and an important relay for its container traffic in this part of the world, especially amidst Covid-induced tensions in the global logistics industry.

Indeed, in Lomé, the Italian-Swiss company already manages the Lomé Container Terminal (LCT), through its subsidiary Terminal Investment Limited (TIL), which has boosted port activities, positioning it among the best container traffic on the continent.

According to its strategic plan, MSC plans to invest up to $500 million in the Port of Lome by 2030.

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