J&T furthers China expansion with $170m acquisition

J&T Express employees are preparing packages. / Photo credit: J&T Express

Indonesian logistics major J&T Express has agreed to acquire China-based Shenzhen Fengwang Information Technology, which owns express delivery firm Fengwang Express, for 1.18 billon yuan (about US$169.9 million).

J&T Express said that the acquisition will help it improve its service quality and competitiveness in China’s ecommerce delivery sector. This move will also support the company’s expansion into other logistics services, building upon its acquisition of Best’s express delivery business in China in late 2021.

Fengwang Express serves 27 provinces, municipalities, and autonomous regions across China and logged over US$459.5 million in revenue in 2022.

After the acquisition, its holding company SF Holding will focus more on its main businesses, such as domestic mid- to high-end deliveries, international express shipping services, global supply chain services, and digital supply chain services.

The deal, which is subject to several conditions, was signed on Monday.

See also: The keys to J&T Express’ rapid global expansion

Earlier this year, it was reported that J&T Express is looking to list in Hong Kong in the second half of 2023 in an offering that could raise a minimum of US$1 billion. The firm is also targeting a valuation of US$20 billion.

Currency converted from yuan to US dollar: US$1 = 6.96 yuan.