State-owned Japan Post will buy Australian logistics company Toll Holdings Ltd. for US$5.07 billion, as it seeks new sources of growth ahead of an initial public offering planned for later this year.

Under the deal, Toll will retain its name and run as a division under Japan Post. Toll’s board of directors has unanimously recommended shareholders accept the offer.

The move came as Toll announced a 22 per cent slide in its first half profit because of challenging economic conditions, especially the slowdown in the resources sector. Japan Post plans to use Toll to help grow its international operations.