Global logistics service provider J&T Express has entered into a share transfer agreement with Shenzhen Fengwang Holdings, a subsidiary of SF Holding on May 16. The acquisition comes following J&T Express’ acquisition of Best Inc’s express business in China in late 2021.
Under the agreement, J&T Express’ subsidiary J&T Express (Shenzhen) Supply Chain, will acquire 100% share rights of Fengwang Holding’s wholly-owned subsidiary, Shenzhen Fengwang Information Technology for RMB1.18 billion ($227.4 million).
Shenzhen Fengwang Express is a wholly-owned subsidiary of Fengwang Information. Its network currently covers 27 provinces, municipalities and autonomous regions across China, providing high quality services to e-commerce customers. In 2022, Fengwang’s revenue exceeded RMB 3.2 billion. The overall network service quality is stable, according to the group.
The transaction is subject to several conditions as well as China’s Examination of Concentrations of Undertakings by the State Administration for Market Regulation. The transaction consideration being settled in a “timely manner” is also another factor.
According to J&T Express, the acquisition will enable it to enhance its integrated service capabilities and increase its competitive advantage in the e-commerce delivery sector.
SF Holding adds that the resources of both companies are “complementary”, which will help to ensure the smooth transition of the transaction. Following this, SF will focus more on developing its core businesses such as domestic mid-to-high-end express services and so on.
