The African activity of the Bolloré group dates back to 1986, when the Breton business owner bought the Société commerciale d’Entrément et de Fuels (SCAC), a company specializing in transit between France and Africa. “The group’s activities make up a system focused on ports. These activities extend from handling at port terminals to rail operations, including the management of inland terminals”, explains Jean Debrie, professor at the University of Paris-1.
The “containerization” of world trade will affect Africa and increase the activity of specialized companies. In 1992, there were only two ports in Africa to exceed a volume of 250,000 containers. Today they are 28!
In this context, Bolloré Africa Logistics, a brand created in 2008 to bring together all of the group’s acquisitions under a single banner, is not confined to port activity. “Bolloré Africa Logistics takes care of all administrative and customs procedures upstream and downstream of transport, for import as well as for export, and ensures the delivery of goods to their final destination”, explains the company’s website.
/2021/12/27/phpasxObk.jpg)
It is the leader in transport and logistics in Africa, with a network of 250 subsidiaries and 21,000 employees in 49 countries, including 47 on the African continent. If the company has offices in 42 ports in Africa, it also manages the activity of 16 container terminals, 7 ro-ro terminals, 2 timber terminals and a river terminal.
The group also operates three rail concessions: Sitarail, which manages 1,200 kilometers of railway lines between Côte d’Ivoire and Burkina Faso and annually transports 200,000 passengers and 800,000 tonnes of freight, Camrail in Cameroon for 1,000 kilometers of track, 1.6 million travelers and 1.8 million tonnes of freight and finally Benirail in Benin and Niger where the group has even built a 140 km line.
On December 20, the Bolloré group confirmed the opening of exclusive negotiations with MSC, an Italian-Swiss shipping company known in particular for its regular purchases of liners from Chantiers de l’Atlantique in Saint-Nazaire, in order to sell Bolloré Africa Logistics to it.
The sale price is estimated between 5 and 6 billion euros, which would value the assets of 2 to 3 billion euros. Because Bolloré Africa Logistics is not a lame duck, and the announcement of its sale has had the effect of a bomb in the media. The group would thus separate from a “small empire within the great empire”, a juicy cash machine.
The question of the reasons for this sale now haunts the media. Vincent Bolloré announced to retire on February 17, 2022 and pass the orders to his son Cyrille. Is this the last strategic move of a very pragmatic man in business? Bolloré has never hesitated to part with some of its activities to finance the expansion of the group. However, currently, it will be necessary to finance the takeover of the Lagardère group provided for by a takeover bid filed by… February 2022!
And the context has never been so favorable for sales. The global economy is overheating and freight has never been more expensive to transport. The large maritime transport companies, including MSC, are seeking to develop a vertical economic model integrating the ship, the port and the hinterland, which is precisely what Bolloré Africa Logistics has.
Some also say that Bolloré was somewhat scalded by his legal disputes over a background of corruption. Despite a plea-guilty procedure in the cases of Guinea and Togo, justice is ongoing and the fine of 375,000 euros could increase.
A transaction in any case very followed at the Elysee Palace, according to some observers. It is true that Bolloré’s departure would mark a definite decline in French influence in Africa.