It will be a powerful boost! CFAO, a subsidiary of conglomerate Japanese Toyota Tsusho Corporation (TTC) operating mainly in Africa , announces on Thursday the entry into exclusive negotiations with the South African group in difficulties Steinhoff (owner of Conforama in particular) to acquire 74.9% of the capital of its car distribution company in South Africa, Unitrans Motor Holdings. If the operation were to take place, it would not only allow CFAO to enter the largest new car market in Africa, where it is currently present only in supply and logistics services, but to see its Automotive branch take on a new dimension.
A dozen brands
“The finalization of the transaction is subject to the negotiation of a final agreement between the parties and the regulatory approvals and partners of Unitrans Motor Group,” said the CFAO press release. Clearly, get the assurance to keep the dozen brands that represents Unitrans, including Toyota, Opel, Ford, Lexus, Nissan, Isuzu, Renault, BMW, Mini, Volkswagen or Audi. “Our wish is to keep all the builders on board and we have no elements that let us think of departures. We are very confident about the completion of this operation, “commented the” Echos “the CEO of CFAO, Richard Bielle.
After the entry of the French group into the fold of TTC, whose main shareholder is Toyota, Nissan and Isuzu had broken their exclusive import and distribution contracts with CFAO in sub-Saharan Africa. “The context is different in many ways,” says a good connoisseur of the file. If only because they were sales to businesses, governments and non-governmental organizations, while Unitrans sells to individuals.
Change of dimension
It sells nearly 35,000 new cars annually in South Africa, when CFAO sells 55,000. He also carries out activities in the field of insurance and car rental. In total, the company employs more than 6,000 people and realized last year a turnover 1.5 billion euros. Its integration with CFAO, which is also present in pharmaceutical distribution and in the sectors of consumer goods, technology and energy, would bring the French group workforce to 21,000, and the turnover to nearly 6 billion euros.
Above all, stresses Richard Bielle, “with Unitrans, we are accelerating the movement we have initiated towards a more retail sales activity focused on retail sales.” In addition, the South African company has know-how in the financing and take-back of used vehicles – it sells almost as many as new – which will serve CFAO elsewhere in Africa.
CAD / CAM accounted for approximately 10% of TTC sales at the end of its fiscal year ended March 2018, and 22% of its sales Gross margin.