Tuesday, December 21, 2021

Logistics/Shipping: "Shipping giant MSC offers to buy Africa unit of Bolloré Logistics"

MSC just passed Maersk as the largest container shipping company by container capacity although Maersk is larger based on revenues and net income. However, MSC is private and Forbes says the Aponte fam is the wealthiest in Switzerland at $10.3 billion. That is very lowball as the company is turning $28 -30 billion in revenues. Throw even a 1 multiple on that and, well it's not higher level math is it.

From FreightWaves. December 20:

$6.7B deal highlights diversification strategy of ocean carriers

Mediterranean Shipping Co., the world’s second-largest ocean container line, has made an offer to acquire the Africa division of Bolloré Group, the France-based third-party logistics provider announced Monday. 

The move is part of a recent trend that has seen ocean carriers and terminal operators become more vertically integrated freight transportation and logistics providers to diversify their revenue streams and offer customers holistic supply chain solutions based on variable needs. Supply chain disruptions during the pandemic have heightened cargo owners’ interest in having alternative freight transportation strategies and capabilities.

The MSC Group, based in Switzerland, is offering to buy 100% of Bolloré Africa Logistics at an enterprise value of 5.7 billion euros ($6.7 billion), not including any minority interests in the company.

The Bolloré Group said it has granted MSC Group exclusive rights until March 31, 2022, to conduct negotiations and comprehensive appraisal of the business. 

Any final agreement is contingent on consultation with labor unions and reorganization of certain internal Bolloré operations. Completion of the sale would require approval by relevant regulatory bodies as well as certain counterparties of Bolloré Africa Logistics.

Bolloré is ranked as the 21st largest logistics provider in the world, based on gross revenue of $5.3 billion in 2020, according to consultancy Armstrong & Associates....


FreightWaves is still using the old rankings for MSC. They really have bumped Maersk from the #1 position Maersk held for 25 years.