This new joint entity will now commence with the task of providing tyres for vehicles of all kinds and will depend heavily on Michelin’s long-term partners in both Kenya and Uganda.
“With growth rates of 4.5 per cent for Uganda and 5.5 per cent for Kenya in 2017, these markets are very dynamic,” adds Richard Bielle, chairman and chief executive officer of CFAO. “As a result, they are of interest to the biggest players in the global industry. CFAO’s alliance with Michelin illustrates our know-how on the continent – providing our partners with immediate solutions to develop markets and to offer consumers high quality products and services.”
This venture represents another example of Michelin’s goal of securing a stake in the distribution channels of its competitors. The French giants have used their acquisition of Ihle Holding AG to invest in several German wholesalers. They have also entered into a 50-50 partnership with Nex Tyres SL in a wholesale joint venture in Spain. The company announced another identical venture earlier this year in North America with Sumitomo Corporation to tap the markets in the US and Mexico.