(Jonathan Burgos and Sterling Wong – Bloomberg Business)
Kintetsu World Express Inc. said it’s buying Neptune Orient Lines Ltd.’s logistics business for 144.2 billion yen ($1.2 billion), which will help the Japanese freight mover expand outside its home market.
The purchase will be made by June, the company said in a statement to the Tokyo Stock Exchange today. The acquisition cost includes 141.6 billion yen to purchase the shares of APL Logistics Ltd. and 2.6 billion yen in advisory costs, it said. The deal is subject to regulatory approvals.
Purchasing APL Logistics, which gets most of its revenues from the Americas, will help Kintetsu’s overseas expansion as the Japanese company gets most of its sales from the home market and Asia. Singapore-based Neptune Orient, which has sold its main office building and some vessels amid four consecutive years of losses, is disposing the logistics unit to take put cash and focus on boosting its container-line business. Click here to read more.