Mediterranean Shipping Co (MSC) has launched a €5.7bn ($6.4bn) bid to acquire the African transport and logistics activities of France's Bollore Group.
The leading liner operator is seeking to acquire Bollore Africa Logistics (BAL), one of the biggest transport and logistics operators in Africa.
Bollore said Monday it had received an offer that concerns the port, rail, and logistics entities in Africa, as well as port concessions in India, Timor, and Haiti.
The company has granted Aponte-family controlled MSC until 31 March next year to conduct due diligence and contractual negotiations.
"The two groups share many similarities," Bollore said in a statement.
"MSC is a European family group with a long-term vision that places its employees at the heart of its business strategy."
The carrier had "made significant investments in Africa in recent years and has great ambitions for the African continent", Bollore added.
"Its investment capacity, resources and market expertise would provide a new impetus to the projects that the Bollore Group has designed, built and developed."
African logistics giant
Speculation over a possible sale of Bollore's logistics operations in Africa first emerged in the French press in October.
That was confirmed in a statement from Bollore on 20 December saying the company had received an offer from MSC to acquire 100% of BAL.
The offer has been made on the basis of an enterprise value, net of minority interests, of €5.7bn, it said.
The company would decide whether to exercise a put option at the start of the second quarter.
Any deal remains subject to approval from competition authorities, employee representative bodies, and certain counterparties, Bollore said.
BAL is regarded as a transport, warehousing, and port operations powerhouse.
It has 250 subsidiaries in 46 countries with involvement spanning terminals, stevedoring, transit, and rail operations.
The deal would massively expand MSC's involvement in terminal operations in Africa, which are presently limited to Lome in Togo and San Pedro in Cote d'Ivoire.
BAL's operations include 16 container terminal concessions in the Republic of Cote d'Ivoire, Ghana, Nigeria, Cameroon, Gabon, Congo, Togo, Conakry (Guinea).
The network also comprises 85 maritime agencies and three African rail concessions.
The move continues the unbridled expansion of MSC, which is soon to become the worlds largest liner operator.
In September, the company launched a bid to take over Brazilian shipowner and terminal operator Log-In Logistica Intermodal.
The Swiss liner giant is hoping to buy up to 67% of the shares in a deal that values the Rio de Janeiro-based company at about $500m.
