FedEx Corp.’s FedEx Express unit has completed the purchase of Tianjin Datian W. Group Co. Ltd.’s 50 percent share of the FedEx-DTW International Priority express joint venture and DTW Group’s domestic express network in China for about $400 million in cash.
Memphis-based FedEx said China continues to be one of the fastest-growing markets in the express industry and a key to its international growth and profitability. The acquisition will allow the company to solidify its leading position and ensure its global customers continued access to China.
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 (thereby converting the venture into a wholly FedEx-owned company).
· DTW Group’s assets used to perform International Priority services.
· DTW Group’s domestic express assets from 89 DTW Group locations.
As a result of the acquisition, FedEx will employ more than 6,000 people in China.
DTW Group will continue to operate international freight forwarding, general cargo transport and merchandise distribution businesses.
