Logistics major acquires 55% of Zambian logistics business

Join the discussion on this story http://bit.ly/LNuiwU Logistics major Cargo Carriers has acquired a 55% stake in Zambian-based BHL for an initial price of US$2.2m. It’s a move designed to boost the growth of the company’s mining business and diversify its earnings through sub-Saharan Africa, according to Murray Bolton, joint chief executive of Cargo Carriers. BHL’s primary business is the transportation of copper concentrate, lime and sulphuric acid in Zambia and the DRC, although it also provides logistics solutions in the manufacturing and agricultural sectors. The fit with Cargo Carriers in this respect is a good one, says Bolton, with Cargo Carriers having substantial logistics operations in both agriculture and mining. “There is no doubt,” said Garth, Murray’s brother and joint CEO, “the centre of gravity for mining has moved north. If we want to be players in this market we need to be present in these countries.” Although the acquisition price is dependent on profit guarantees over the next three years, both parties believe that there are substantial growth possibilities that will emerge as a result of the transaction. Is acquisition the route to go for companies expanding into Africa? Join our forum and have your say by clicking on the link below: http://bit.ly/LNuiwU