FedEx Corp.'s FedEx Express unit signed an agreement with Tianjin Datian W. Group Co. Ltd. to acquire DTW Group's 50 percent share of the FedEx-DTW International Priority express joint venture and DTW Group's domestic express network in China for $400 million, the carrier said yesterday.
FedEx and DTW Group entered into a joint venture in 1999.
The acquisition includes:
· DTW Group's share in the International Priority express joint venture, converting the venture into a wholly FedEx-owned company.
· The DTW Group assets used to perform International Priority services.
· DTW Group domestic express assets from 89 DTW Group locations.
· Upon closing, FedEx will employ more than 6,000 people in China. The transaction is subject to customary conditions, including government approvals and licensing.
“This acquisition deepens our engagement with the China market,” said David L. Cunningham Jr., president, Asia Pacific, FedEx Express. “Our customers will benefit from seamless access to key areas worldwide, including China's second- and third-tier cities.”
DTW Group will continue to operate international freight forwarding, general cargo transport and merchandise distribution businesses.
Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters