TNT NV, one of the world's leading express delivery companies, has signed an
equity transfer agreement in Shanghai to acquire Hoau Group, China's biggest
private road logistics supplier.
TNT will acquire Hoau's nationwide road transport and freight business
through the deal, TNT said in a statement on its Website yesterday.
The company didn't disclose the size of its stake in Hoau.
The signing of the agreement follows a letter of intent, announced in
December and a framework deal completed in February.
The parties expect to complete the transaction early next year, subject to
approval by the Chinese government, TNT said.
"The acquisition of Hoau offers TNT comprehensive road coverage in China and
is in line with TNT's strategic focus on integrated domestic and international
networks," the Dutch company said in the statement.
Hoau Group, based in China's northeast Heilongjiang Province, has more than
1,100 depots and 56 hubs across China, the statement said.
TNT has sold its global logistics businesses to focus on the more profitable
mail and express delivery services.
Kenneth McCall, chief executive officer of TNT China, said in earlier
interviews that Hoau will be merged into TNT's express delivery after three to
five years of integration.
Following the acquisition, the number of employees in China will rise to
12,000 to 14,000 from the current 4,000 to 5,000, he said.
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