Kintetsu World Express has reached an agreement with Neptune Orient Lines to buy APL Logistics a wholly owned subsidiary of NOL in a deal worth US$1.2 billion.
APL had sales of US$1.6 billion in 2013.
Kintetsu wants to create a management base that can compete on a par with European and US competitors in the global market. It said: “APLL is a logistics company with strengths in logistics services and various high-value-added services for companies in the automobile industry and retail industry, among others, and it is expanding its business globally, with a focus on North America and Asia.
“By welcoming APLL into the KWE Group, we can expect to complement the KWE Group’s freight forwarding services in terms of both commodities handled and regions for expansion, and we will be able to combine the logistics services and various high-value-added services that are the strengths of APLL with the air and sea freight forwarding services that the KWE Group is expanding globally, and these synergies will, in turn, make it possible to create new value and provide a broad range of optimised logistics services to customers.”