The world’s largest shipping firm Maersk has reached an agreement to acquire
LF Logistics, a Hong Kong-based contract logistics company, for $3.6 billion in an all-cash deal as it seeks to expand beyond its core ocean freight business.
The deal is one of the group’s largest takeovers. It follows a series of acquisitions, including e-commerce firms, a freight forwarder specializing in air freight, and its smaller rival, Hamburg Sud.
“The acquisition of LF Logistics is an important and truly strategic milestone on our journey to become the global integrator of container logistics; a global logistics company that provides digitally enabled end-to-end logistics solutions based on control of critical assets. With the acquisition of LF Logistics, we add critical capabilities in Asia Pacific to support our customer’s long-term growth in the Asia Pacific as well as capabilities and technology we can scale in our contract logistics business globally.”Soren Skou (CEO of Maersk)
As part of the agreement to acquire LF Logistics, Maersk will enter a strategic partnership with Li & Fung to develop logistics solutions.
LF Logistics operates an extensive Pan-Asian network and is the supply chain partner of choice for companies looking to grow in the Asia-Pacific region. LF Logistics specialises in B2B and B2C distribution solutions within retail, wholesale, and e-commerce. LF logistics’ deep customer relations and operational excellence is a strong base for Maersk to expand within Asia-Pacific and globally.
“We recognize that for LF Logistics to be a global leader in the industry, achieving scale is of paramount importance. Maersk provides the ideal fit for our people and our customers. It has a substantial presence around the world and will utilize LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfillment offering globally. This is testament to the strength of our team, our unique operations-centric culture, and superb growth potential. Together we will deliver a compelling value proposition that allows our people to attain their full potential and our customers to achieve sustainable competitive advantage”
Joseph Phi CEO of Li & Fung and CEO of LF Logistics