MSC Group reached a multi-billion dollar deal to acquire the Bollore Group’s logistics operations in Africa and some parts of Asia.
The shipping giant said on Thursday that the agreement to buy 100% of Bollore Africa Logistics (BAL) is based on an enterprise value of €5.7bn ($6.3bn) for the company, a figure that is “net of minority interests”.
This is just the latest expansion move for Switzerland-based MSC Group. Flush with cash from a Covid-19-fuelled container ship bonanza, the company’s flagship Mediterranean Shipping Co (MSC) arm has risen to become the world’s largest liner operator after acquiring nearly 130 boxships on the secondhand market in 2020 and 2021.
“The acquisition of Bollore Africa Logistics reaffirms MSC Group’s longstanding commitment to invest in Africa and to strengthen supply chains across the continent, as well as connecting it to the rest of the world,” the company said.
MSC Group’s latest acquisition owns shipping, logistics and terminals operations in Africa, as well as port concessions in India, Haiti and Timor-Leste.
The company and France’s Bollore Group had been in exclusive talks since 20 December, as TradeWinds reported. Aponte-family controlled MSC had until 31 March to conduct due diligence and contractual negotiations.
The deal, however, remains subject to regulatory and competition approvals. Some BAL counterparties also have to agree for the deal to move forward, Bollore said in a separate statement.
Buying a powerhouse
“The sale… is expected to be completed by the end of the first quarter of 2023,” Bollore said.
Speculation over a possible sale of Bollore's logistics operations in Africa first emerged in the French press in October.
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 massively expands MSC Group’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.
