Yamato to acquire stake in Chinese logistics company
Japanese parcel delivery giant aims to step up Asian expansion
TOKYO -- Yamato Holdings will acquire just shy of 40% of China's Guangzhou Wisepower Transportation & Distribution Group as part of its goal to strengthen its overseas logistics business, the Japanese parcel delivery giant said Friday.
The price of the acquisition was not disclosed, but it is expected to be in the tens of millions of dollars. Within the next three years, Yamato will gradually increase its stake to make the Chinese company a majority owned subsidiary.
Wisepower, also known as WTD, manages international shipments and customs clearance using Guangzhou Province as a base. It was established in 1995 and employs around 700 people. In addition to the cross-border trade business, the company manages truck freight. It recorded sales of 482 million yuan ($70 million) in fiscal 2015.
Yamato will purchase the stake through its Hong Kong subsidiary. It plans to combine WTD's inter-business logistical services in mainland China with its personal delivery services in Hong Kong. The deal will make it possible for goods produced on the mainland to be transported to Hong Kong via truck, then delivered directly to consumers.
Copyright 2010 Yamato Transport Europe B.V.