Leading shipping line Mærsk A/S has reached an agreement to acquire 100 percent of the shares in the contract logistics business of Hong Kong-based LF Logistics in an all-cash deal valued at US$3.6 billion.
The acquisition is expected to strengthen Maersk’s capabilities as an integrated container logistics company that offers end-to-end supply chain solutions to its customers.
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LF Logistics, owned by fashion and retail enterprise Li & Fung and Singapore’s Temasek Holdings, is an omnichannel fulfilment contract logistics company that serves the fashion, retail and FCMG industry with two key business units: in-country logistics (ICL) and global freight management (GFM).
In addition to the agreement to acquire LF Logistics, Maersk will enter a strategic partnership with Li & Fung to develop contract logistic solutions. The company has an extensive network of 223 warehouses covering 2.7 million sqm across 14 countries in Asia Pacific. Its contract logistics unit reported revenue of around US$850 million last year.