Maersk to buy Hong-Kong LF Logistics for $3.6bn
Shipping giant Maersk has agreed to buy Hong-Kong logistics company LF Logistics for $3.6bn.
The deal, all-cash and one of the biggest ever made in Maersk’s history, will help the Copenhagen-based company expand its reach and capabilities in the Asia Pacific region.
“With the acquisition of LF Logistics, we add critical capabilities in Asia Pacific to support our customers long term growth as well as capabilities and technology we can scale in our contract logistics business globally,” Maersk’s chief executive Soren Skou said.
Following the transaction, Maersk will add 223 warehouses to its existing portfolio and will enter a partnership with LF’s controlling shareholder Li & Fu to develop logistics solutions. The deal is expected to close in 2022.
“Maersk provides the ideal fit for our people and our customers,” added LF Logistics’ chief executive Joseph Phi. “It has a substantial presence around the world and will utilise LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfilment offering globally.”
LF’s acquisition is Maersk’s latest in a long series of takeovers, which include e-commerce firms and a freight forwarder, Reuters reported.