General retreat from GEFCO?
According to rumours, after the automotive giant PSA, also Russian railways RZD are planning to reduce their participation in the French logistics operator significantly
Three weeks ago Reuters circulated the rumour that Russian railways RZD are planning to reduce their participation as majority shareholders since six years in the French logistics operator GEFCO significantly.
The leak is thought to be included in the Muscovite railway giant's secret strategic plan, which is being examined by the Kremlin for approval.
This rumour – which would be resounding if it came true - echoes the news disclosed last spring by the other equally authoritative international source, the French economic newspaper Les Echos, reporting that also the automotive group PSA (including Peugeot and Citroen) is planning to sell its 25% minority share, following the transfer of 75% of its shares to RZD in 2012 (for 800 million euro).
Waiting for confirmations about the double disposal of share assets – PSA would leave the stage completely, while RZD would decrease to 40% within 2020 – the French multinational logistics company is carrying on its renewal plan started at the beginning of 2018.
As a matter of fact, at the end of last January the Paris-based company presented its new brand identity “GEFCO Partners, unlimited” aiming at involving stakeholders in its commitment to build long-term relations and to create value. Simultaneously, the company focused on innovation and international expansion, diversifying its automotive core business and expanding its portfolio significantly within the industrial, energy, heavy equipment, pharmaceutical, fashion, consumer goods, food and aerospace sectors, which it has already been exploring since the change in ownership in 2012.
The last stage of this ascending strategy occurred in September with the acquisition of the Spanish GLT, a company specialised in road-sea combined transport, using the ports of Algeciras and Tangier as terminals for their maritime-road trade between Europe and Morocco, which last year achieved a 35 million euro turnover.
In the first half of 2018, the French group recorded a significant improvement in its accounts with a 6.2% increase in revenues due to the increase in integrated logistics solutions sales determined by the double-digit increase of Value Key Accounts (integrated logistics customers international portfolio) resulting from their commitment to develop complex supply chains skills, to gain new customers and to increase their customers business volume by providing cross-selling and up-selling services.
Among its new customers, the company boast Renault-Nissan, John Deere and Amazon.
Established in 1949, GEFCO is active in 47 countries, with 300 branches, 13,000 employees and a 4.4 billion euro turnover.