Maersk strikes deal to buy LF Logistics for $3.6 Bln
Deal expands ocean shipping giant’s push into land-based distribution
AP Moeller-Maersk AS said Wednesday it has agreed to buy LF Logistics Holdings Ltd. in an all-cash deal.
The Danish shipping company said it would acquire 100% of the private, Asia-Pacific-based logistics company for an enterprise value of $3.6 billion.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
An earn-out of up to $160 million linked to future financial performance has been agreed upon as part of the deal, Maersk said.
The Wall Street Journal reported Tuesday that Maersk was nearing a deal to buy LF Logistics for about $3 billion.
SHIPPING OPTIONS DRY UP AS BUSINESSES TRY TO REBUILD FROM PANDEMIC
The deal is expected to close in 2022 and unlock substantial synergies, Maersk said Wednesday.
|AMKBY||A.P. MØLLER-MÆRSK A/S||11.82||+0.24||+2.07%|
On Monday, French conglomerate Bollore SE said it had received a $6.4 billion offer from Geneva-based Mediterranean Shipping Co. to buy its African logistics assets. If the deal goes through, it will give MSC, the world's second-biggest container ship operator, control of 16 terminals in Ivory Coast, Ghana, Nigeria and Gabon along with three rail concessions.
CLICK HERE TO READ MORE ON FOX BUSINESS
This comes amid investments by a slew of boxship operators in terminals, new ships and other assets following a bumper profit year when most operators made four times as much as they did in 2020, on the back of high demand for manufactured goods during the pandemic.
Write to Joshua Kirby at firstname.lastname@example.org; @joshualeokirby