MSC Mediterranean Shipping Co., the world’s second-biggest shipping line, has offered to buy the African transport and logistics unit of Bolloré Logistics in a deal valued at US$6.4 billion.
The French transport and logistics company made the announcement saying that it received such an offer from MSC for the purchase of Bolloré Africa Logistics and that it has granted an "exclusivity" to the Geneva-based MSC.
"The Bolloré Group announces that it has received an offer from the MSC Group, a major player in container transport and logistics, 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 €5.7 billion," Bolloré said.
It added that the Bolloré Group has also granted the MSC Group an exclusivity until March 31, 2022 to enable the MSC Group, further to an additional due diligence phase and contractual negotiations, to submit a put option.
"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 reorganisation operations have been carried out within the Bolloré Group," the French transport and logistics firm added.
It said completion of the sale would require the approval of regulatory and competition authorities, as well as of certain counterparties of Bolloré Africa Logistics.
"The Bolloré Group will report on the outcome of these exclusive negotiations in due course," it continued, noting that the Bolloré Group "will, in any event, remain strongly involved in Africa."
It said the Group will also continue to develop its activities in numerous sectors such as communication, entertainment, telecoms, publishing.
Bolloré Logistics is ranked as the 21st largest logistics provider in the world, based on gross revenue of US$5.3 billion in 2020, according to consultancy Armstrong & Associates.
In Africa, the Bolloré unit is considered biggest player in the sector, with almost 21,000 employees in 49 countries, according to the group’s website.
The business is active in 42 ports, including 16 container terminals, seven roll-on, roll-off ferry ports and two wood terminals. It also has a network of 85 maritime shipping agencies and operates three rail concessions.
Record profits have allowed ocean carriers to look into acquisitions and expansions than ever before.
Earlier this year, several shipping lines have also struck M&A deals in the logistics arena.
CMA CGM launched CMA CGM AIR CARGO earlier this year and also agreed to buy US-based e-commerce and contract logistics specialist, Ingram Micro.
Maersk Line also agreed to buy German freight forwarder, Senator International whole expanding its in-house cargo carrier. It also acquired three European e-commerce companies.
Meanwhile, global port operator, PSA International, signed an agreement to acquire 100% of the shares of privately-held BDP International, Inc. (BDP) – a provider of global integrated supply chain, transportation and logistics solutions.
