MSC offers $6.4B for Bollore’s logistics assets in Africa

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  • Mediterranean Shipping Company (MSC) has put up an offer to acquire 100% of Bolloré Africa Logistics for EUR5.7 billion
  • The offer from MSC group is for the acquisition of 100% of Bolloré Africa Logistics, comprising all of Bolloré Group’s transport and logistics activities in Africa

Swiss-based Mediterranean Shipping Company (MSC), the world’s second largest container shipping line, has put up an offer to acquire 100% of Bolloré Africa Logistics for EUR5.7 billion (US$6.4 billion).

The French-based Bolloré group in a December 20 statement announced it has received an offer from the MSC group, to “acquire 100% of Bolloré Africa Logistics, comprising all of the Bolloré Group’s transport and logistics activities in Africa, on the basis of an enterprise value, net of minority interests, of EUR5.7 billion.”

“The Bolloré Group has granted the MSC Group an exclusivity until 31 March 2022 to enable the MSC Group, further to an additional due diligence phase and contractual negotiations, to submit a put option,” the statement said.

The Bolloré group’s decision to exercise this put option and the signature of the relevant agreements may only take place after the competent employee representative bodies have been informed and consulted and certain internal reorganization operations have been carried out within the group, it added.

Completion of the sale would require the approval of regulatory and competition authorities, as well as of certain counterparties of Bolloré Africa Logistics.

The offer from MSC comes on the heels of competitor ocean carriers CMA CGM and Maersk making major acquisitions in port infrastructure and non-maritime logistics services.

Related read: Maersk to buy freight forwarder Senator for $644M

Related read: CMA CGM to acquire major Los Angeles container terminal

Due to supply chain disruptions including port logjams and a shortage of container vessels, shipping freight rates have soared to new heights, allowing carriers to rake in huge profits that they are now investing to further integrate operations through acquisitions of port terminals, freight forwarders and other land-based services.

According to analysts, this is just the beginning of the battle for the global logistics markets, which is set to intensify further going forward.

Photo by Bahnfrend