JD Logistics is to acquire a controlling interest in Kuayue Express for $432m. The deal was made weeks after JD.com bought a stake in Hong Kong based Li & Fung for $100m.
The company expects to close this transaction in the third quarter of 2020 and it involves a combination of buying existing shares and subscribing to newly issued shares of Kuayue Express.
The deal demonstrates the push being made by Chinese e-commerce players to expand their logistics infrastructure in light of the surge in consumer demand, which only increased amid the Coronavirus pandemic and lockdown restrictions.
Zhenhui Wang, CEO of JD Logistics said, “We are pleased to collaborate with Kuayue Express to provide customers with the best services available. Collaborating with Kuayue Express advances our integrated supply chain management, technology initiatives and service expansion to third party merchants. We will leverage our respective advantages and the synergy the collaboration creates to enhance the client experience and increase overall supply chain efficiency for JD and society at large.”
Source: PostandParcel and South China Morning Post
