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).

427 yugf

"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).

426 yugf

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.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.