Maersk the new owner of Hong Kong forwarder LF logistics
Maersk has completed the acquisition of LF Logistics. This Hong Kong-based forwarder brings along a large customer base in southern China, a major production region. Maersk sealed the deal at a value of 3.6 billion US dollars.
In a notification to the Copenhagen Stock Exchange, the shipping company says it expects “significant business synergies” from the reciprocal sale of LF logistics services to existing Maersk customers and Maersk container services to LF customers. In addition, “smaller cost synergies” are expected when the companies are merged.
The group does not expect the acquisition to contribute to the group result this year as the accounting impact on the underlying result of the consolidation of LF Logistics will not materialise in 2022. Incidentally, the parties have agreed on a so-called earn-out arrangement of 160 million US dollars. Maersk only needs to transfer that amount if certain conditions are met.
The group already announced the acquisition at the end of last year as part of its strategy to significantly expand its logistics division. LF employs approximately 10,000 people and operates 223 distribution centers in 14 Asian countries. Selling parties are the majority-owned Chinese trading house Li & Fung Limited and Singaporean state investor Temasek with a 22 per cent stake.
This article was originally published on our sister publication NT.