MSC Group has bought Bolloré Africa Logistics for 5.7 billion euro ($6.06bn) from parent Bolloré.
The seller will receive 5.1bn euros ($5.42bn). The other 600 million euros ($638mn) will go to repay shareholder loans.
The companies announced exclusive negotiations had begun in December 2021. They signed an agreement on the sale in March this year. At that point, they predicted the deal would complete by the end of the first quarter of 2023.
On December 1, Bolloré said it had obtained the required regulatory and competition approvals.
MSC has said it intends to keep Bolloré Africa Logistics as an autonomous unit. The buyer will unveil a new brand for the unit in 2023.
It will keep the organisation and jobs intact, the company has said. Bolloré Africa employs around 21,000 people.
“Backed by MSC Group’s financial strength and operational expertise, Bolloré Africa Logistics will be able to meet all its commitments to governments, particularly regarding port concessions,” MSC said.
The sale includes all of Bolloré Group transport and logistics activity in Africa. Bolloré said it would remain involved in Africa via Canal+ and involvement in communications and publishing.
East Africa
Bolloré won work to handle logistics on the East African Crude Oil Pipeline (EACOP) in May 2022. The 1,443 km pipe will be the longest heated pipeline in the world, with capacity of 216,000 barrels per day.
Bolloré will use Dar es Salaam as the main port to supply the project. It acts in Tanzania via a joint venture, EALS, with Super-Star Forwarders.
It will oversee the importation and delivery of more than 80,000 18-metre pipe sections, in addition to various other goods and containers. The company will import the pipe and transport it to a plant in Nzega, for thermal insulation coating.
The company then has responsibility for distributing the pipe sections across Uganda and Tanzania, with the project covering more than 30 million km.