High profits made during the pandemic means that investment and acquisitions should hot up
The pandemic wasn’t bad news in every respect, certainly not in the ports and container sectors where profits in general are booming.
And this means that there will probably be a wave of new deals being announced over the next few months as the movers and shakers put their money where their mouth is.
Strategic move
One such deal on the table as we go into 2022 is the offer of the acquisition of 100% of Bolloré Africa Logistics made by the shipping giant MSC Group.
If the move goes ahead it could bring together all the transport and logistics activities of the Bolloré Group in Africa, based on an enterprise value, net of minority interests of €5.7 billion.
The Bolloré Group has granted exclusivity to the MSC Group until 31 March 2022 so that the latter can, at the end of a phase of additional audit and contractual negotiations, hand over a promise to purchase.
Completion of the sale is subject to obtaining regulatory and regulatory approvals as well as with the agreement of some of the counterparties of Bolloré Africa Logistics.
If the deal happens, the Bolloré Group will still retain a significant presence in Africa though, in particular through Conservative billionaire Vincent Bolloré interests in Canal +, a leading pay-TV operator in French-speaking Africa and major shareholder of MultiChoice, Africa’s leading entertainment company.
It hasn’t been smooth sailing for the group’s Africa logistics business. Last year, the company was fined €12m over allegations it had corruptly secured a ports contract in Togo. This remains under official investigation.
But it would be a lucrative acquisition for MSC, by way of extending its reach into critical inland infrastructure in West Africa.
