<\/p>\n
Container shipping giant Maersk on Wednesday agreed to buy Hong Kong-based LF Logistics for $3.6 billion in an all-cash deal, as it seeks to expand beyond its core ocean freight business.<\/p>\n
The deal is one of the group’s largest takeovers to date and follows a series of acquisitions including e-commerce firms, a freight forwarder specializing in air freight and its smaller rival Hamburg Sud.<\/p>\n
“The acquisition will further strengthen Maersk’s capabilities as an integrated container logistics company, offering global end-to-end supply chain solutions to its customers,” the company said in a statement.<\/p>\n
Maersk will buy LF Logistics from controlling shareholder Li & Fung Ltd, a Hong Kong-based supply chain manager, and from Singapore state investor Temasek which bought 22% of the company in 2019. The deal is expected to close in 2022.<\/p>\n
With a network of 223 warehouses and around 10,000 employees in 14 Asian countries, LF Logistics provides land-based logistic services such as warehousing and trucking to over 250 global customers.<\/p>\n
The company had revenue of $1.3 billion last year. Maersk said it expects to more than double the revenue and operating profit at the company by 2026.<\/p>\n
Record high container freight rates stemming from the impact of the pandemic have boosted big shipping companies and prompted deal-making by Maersk and its rivals, including CMA CGM and Mediterranean Shipping Company (MSC).<\/p>\n
With chaotic conditions in the global supply chain, big companies have been willing to pay a premium for more reliable and integrated freight solutions.<\/p>\n
The price implies that the valuation of LF Logistics has more than doubled since the Temasek deal valued the company at nearly $1.4 billion two years ago.<\/p>\n
French billionaire Vincent Bollore received a 5.7 billion-euro ($6.43 billion) offer from MSC for his African logistics assets, his company Bollore SE \u00a0said on Monday.<\/p>\n
This month, French rival CMA CGM accelerated its push into warehouses and end-to-end logistics by agreeing a $3 billion deal to buy assets from U.S. technology group Ingram Micro. In November, it bought a container terminal in Los Angeles for around $2 billion.<\/p>\n
Since breaking up its conglomerate in 2016, including selling its oil and gas business, Maersk has transformed into an integrated logistics company.<\/p>\n
Although container shipping accounted for 73% of its revenue last year, Maersk aims to offer customers such as Walmart and Nike shipment of goods from factory to store, even offering last-mile delivery to end-customers.<\/p>\n
(Reporting by Jacob Gronholt-Pedersen and Stine Jacobsen; editing by Jacqueline Wong and Jason Neely)<\/p>\n<\/p><\/div>\n
maritime professional<\/p>\n","protected":false},"excerpt":{"rendered":"
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