CFAO, one of the leading distribution companies operating in Africa, on Thursday announced it is currently into exclusive negotiations with the Steinhoff Group for the acquisition of 74.9 percent of the capital of Unitrans Motor Holdings (Pty) Ltd on the basis of a preliminary agreement signed between the parties.
Keeping in line with its commitment to contribute to local economic development, Steinhoff is expected to sell the remaining 25.1 percent of Unitrans’ remaining capital to a South African partner meeting Broad-Based Black Economic Empowerment criteria.
“With this project to set up the continent’s largest car distribution market, CFAO is taking a key step in its pan-African development and is strengthening its presence in South Africa, where the Group is already active in supply and distribution services, logistics for the local automotive sector,” said Richard BIELLE, Chairman and CEO of CFAO.
The transaction’s completion is subject to negotiation of a definitive agreement between the parties and regulatory approvals and Unitrans Motor Group partners.
CFAO is a major player in specialized distribution in Africa and the French Overseas Territories, a privileged partner of major international brands. The Group is the leader in automotive and pharmaceutical distribution and is developing in the consumer goods, technology and energy sectors.
With a total of 99 outlets, Unitrans Motor Group operates one of South Africa’s largest auto dealership networks. The group, which also operates in the field of insurance and car rental, represents more than 10 manufacturers. It employs more than 6,000 people and generates a turnover of 1.5 billion euros. With more than 550,000 units sold in 2018, South Africa is the largest new car market in Africa. It accounts for 45 percent of new vehicle sales on the continent.
