Bollore Sells Stake to MSC for $6.3 Billion

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Bollore Logistics has agreed to sell its African operations to MSC Shipping Company for US$ 6.3 Billion( KSh 724.8billion)..

Bollore African Logistics, which belongs to French tycoon Vincent Ballore, first received an offer worth US$ 6.43 Billion towards the end of 2021 from Mediterranean Shipping Company(MSC)- a Swiss-Italian conglomerate headquartered in Geneva and owned by the Aponte family.

While MSC is one of the major cruise companies globally, the French Logistics firm is considered Africa’s largest transport and logistics operator.

MSC’s acquisition of the Logistics firm now gives it an edge over rivals CMA CGM( CMACG.UL) and Maersk in non-maritime logistics services and port infrastructure.

MSC entered into an exclusivity agreement with Bolloré Group to permit additional due diligence and contractual negotiations.

This deal was set to expire on March 31. Completion of the acquisition is subject to the receipt of approvals, including from the relevant competition authorities.

Africa is seen as a growing market opportunity by the major shipping lines.

Germany’s Hapag-Lloyd acquired container and breakbulk line NileDutch, which specializes in the West African market, in 2021 and recently announced it had signed a framework agreement to purchase the container business of the Deutsche Afrika-Linien, with primary operations in South Africa.