J&T Express, an Indonesia-based courier startup, announced last Friday that it would pay RMB1.183 billion ($170.09 million) to acquire Shenzhen Fengwang Information Technology Co., Ltd. (Fengwang Information), the owner of Chinese e-commerce logistics provider Shenzhen Fengwang Express Co., Ltd. (Fengwang Express).
According to a statement released by J&T Express, the company has signed a share transfer agreement with Shenzhen Fengwang Holdings Co., Ltd. (Fengwang Holdings), a division of S.F. Holding Co., Ltd.
According to the agreement, J&T Express (Shenzhen) Supply Chain Co., Ltd., a subsidiary of J&T Express, will purchase all of the outstanding shares of Fengwang Information, a fully owned subsidiary of Fengwang Holding.
The statement claims that this transaction is subject to a number of conditions, including the State Administration’s review of undertaking concentrations for market regulation and the timely settlement of the transaction consideration in accordance with the share transfer agreement.
Since entering the Chinese market in 2020, J&T Express has made notable progress in the field of express delivery for e-commerce.
In late 2021, the business successfully acquired Best Inc.’s express operations in China.
According to the statement, Fengwang Express’ network currently provides high-quality services to e-commerce customers in 27 provinces, municipalities, and autonomous regions across China.
Fengwang’s earnings surpassed RMB3.2 billion ($460.13 million) in 2022. The overall stability of network service quality.
J&T Express has stated that as part of its focus on the e-commerce express delivery service industry, it is committed to continuously improving the customer experience.
The capabilities of J&T Express’ integrated service will be improved by this acquisition.
This decision is predicted to encourage the industry’s high-quality development, enabling it to further strengthen its competitive advantage in the e-commerce delivery market and contribute to the high-quality growth of the sector.
