TOYOTA TSUSHO CORPORATION / CFAO 2017

Abstract

Compagnie Française de l’Afrique Occidentale (CFAO) is a French company present for more than 150 years in Africa. Exclusive partner of international brands, CFAO is the leader in automobile and pharmaceutical distribution in Africa and French overseas territories. Actually, the group itself was owned by another giant French corporation PPR and when François-Henry Pinault (PPR founder’s son) took over as a leader, he decided to refocus PPR in the luxury fashion industry and then he started to separate subsidiaries that were no longer considered as strategically relevant . Thus, in 2012, PPR decided to divest part of its capital in CFAO and in July of the same year, they announced that they would transfer it to Toyota Tsusho Corporation (TTC). TTC is a Japanese general trading company which belongs to the Toyota Group. In 2007, TTC launched Vision 2015 – Lead the Next; a corporate campaign which main objective was to make TTC a value-generating corporation that addressed social and environmental issues. It was also intended to establish a 50:50 balance between TTC’s automotive and non-automotive business within the next six years. Present in Africa since 1922, but mainly in eastern and southern part, TTC was looking for a way to expand there so obviously, PPR’s decision to divest was an opportunity not to be missed. In July 2012, TTC received 29.8% of CFAO’s capital and this transfer will marked the beginning of an acquisition. Indeed, two month after receiving almost 30%, TTC launched a tender offer and acquired 98% of the French company. Four years later, in 2016, with the updated Vision 2015 – Lead the Next which became Global Vision 2020, TTC decided to go further from being major shareholder to unique owner of the giant French Group by acquiring the remaining 2% shares. In 2017, without any pre-expectations, TTC decided to give the management of all its other African assets to CFAO. Should we consider this move as the one ensuring TTC’s leadership in African markets?

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