JD.com announced Friday that it will buy stake in Kuayue-Express Group, a privately held logistics business. The deal is valued at 3 billion yuan ($365 million), with which JD.com will buy both current and newly released shares of Kuayue.
The move shall strengthen JD.com’s presence in the logistics field, which should, in turn, bolster its core task that is retail. Technically, the company’s subsidiary Jingdong Express Group (also known as JD Logistics) could end up being the entity buying Kuayue.
JD.com’s upcoming acquisition ended up being founded in 2007. Kuayue’s vehicle fleet is all about 15,000 strong, and it runs 11 charter flights daily in Asia. The business handles around 300,000 deliveries daily.
“Collaborating with Kuayue Express improvements our integrated supply chain administration, technology initiatives, and solution expansion to party that is third,” JD.com quoted JD Logistics CEO Zhenhui Wang as saying. “We will leverage our particular advantages and the synergy the collaboration produces to enhance the client experience and increase supply that is overall effectiveness for JD and society at large.”
JD.com did perhaps not specify what size a big part stake in Kuayue it’s acquiring. The business expects the deal to close into the quarter that is third of 12 months.
The e-commerce that is continues that are chinese be robust. The sector is fairly competitive, particularly as it’s led by behemoth Alibaba while JD.com is a major player.
Following news of the Kuayue deal, JD.com’s shares dipped by 0.8%, a slightly steeper decrease than that experienced by the S&P 500 index. JD.com announced Friday that it will buy stake in Kuayue-Express.