CHINA’S JD Logistics will acquire the 36.43 per cent stake it does not already own in Kuayue-Express Group for not more than 6.48 billion yuan (S$1.2 billion) to further enhance express delivery offerings, the logistics services firm said on Friday (Dec 6).
Under an agreement, Suqian Jingdong Bohai Enterprise Management, a unit of JD Logistics, will acquire the remaining stake in Kuayue-Express.
The acquisition “enables the group to better integrate its resources, reduce costs and improve the management and operational efficiency of the group,” JD Logistics said.
JD Logistics acquired an initial controlling stake in Kuayue-Express in 2020 and raised its interest in the firm two years later to 63.57 per cent, with an aim to strengthen the company’s freight business and services.
Kuayue-Express is an integrated speed transport company specialising in limited-time express service, according to its website. It specialises in express transportation of small loads of freight.
JD Logistics said the acquisition of Kuayue-Express will enable it to focus on further synergies between the companies and accelerate its development and competitiveness.
It also flagged potential for further expansion of the businesses of Kuayue-Express with the firm’s growth exceeding industry standards in the past few years.
Shares of JD Logistics have surged roughly 44 per cent so far this year. REUTERS
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